Bank of England Softens Stablecoin Rules as CLARITY Act Odds Slip Below 50%

Key Takeways

• The Bank of England removed proposed individual stablecoin holding caps and introduced a £40 billion issuance limit
• Polymarket data shows the odds of the CLARITY Act becoming law in 2026 have fallen to 48%
• The developments highlight a growing contrast between the UK’s regulatory progress and uncertainty surrounding US crypto legislation

Crypto regulation seems to be taking different turns. Traders on Polymarket have become less confident that the CLARITY Act will become law this year. Meanwhile, the Bank of England moved ahead with a more accommodating approach to stablecoin regulation. This contrast is hard to miss. One major financial center is refining rules for digital assets, while the world’s largest economy is still trying to decide what those rules should look like.

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Bank of England Softens Stablecoin Rules

The Bank of England published its final policy framework and draft rules for systemic stablecoins. They are dropping a proposal that would have limited how much users could hold in a single stablecoin.

Instead, the central bank proposed a temporary issuance cap of £40 billion per stablecoin. According to the Bank of England, that level would be large enough to support transaction volumes comparable to some of the UK’s existing payment systems. But regulators continue assessing risks.

The framework also eases certain requirements around reserve backing compared with earlier proposals. Officials said the rules are expected to be finalized by the end of 2026.

The move comes as stablecoins continue to gain traction globally. According to data from CoinMarketCap, the sector’s combined market capitalization now exceeds $250 billion. This is by Tether’s USDT and Circle’s USDC.

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CLARITY Act Odds Slip Below 50%

Meanwhile, sentiment around US crypto legislation appears less certain. Data from Polymarket showed the odds of the CLARITY Act being signed into law in 2026 falling to 48% on June 22. The bill is widely viewed as one of the most important proposals for establishing a clearer framework for digital assets in the US.

The decline does not necessarily mean the legislation is in trouble. Prediction markets often swing with political developments and legislative timelines. Despite this, the shift shows how uncertain the situation is around crypto policy.

This uncertainty stands in contrast to recent developments in the UK, where regulators are moving from consultation to implementation. For crypto firms, stablecoin issuers, and investors, the message is becoming clearer that regulatory progress is not happening at the same pace everywhere. While the US continues debating the future of digital assets, the UK is moving on to the next chapter.

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