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The U.K.’s Financial Conduct Authority (FCA) has eased its proposed capital requirements for stablecoin issuers, following the Bank of England’s reversal of plans to cap individual holdings.

Under the updated framework, issuers would need to hold reserves equal to 1% of the total value of stablecoins in circulation, down from the previously proposed 2%.

The FCA said the adjustment is aimed at making the prudential regime more proportionate—particularly for larger issuers—while maintaining overall system resilience.

The new threshold is lower than the European Union’s Markets in Crypto-Assets (MiCA) requirement, which remains at 2%.

According to the regulator, the broader goal is to simplify the framework and improve its real-world usability.

The shift comes after the Bank of England scrapped its proposed £20,000 ($26,500) cap on how much stablecoin an individual could hold.

Globally, regulators are continuing to roll out formal crypto oversight regimes, with stablecoins a key area of focus.

The FCA also outlined plans to simplify rules for crypto exchanges, requiring them to set aside 40% of trading capital to cover potential losses and apply a 40% haircut to collateral used in lending or trading with counterparties.