According to the source, the Bank of England proposed a GBP 20,000 cap on retail stablecoin holdings to curb consumer exposure and payment-system risks, source: Bank of England. The proposal sits within a policy framework for regulating sterling-referenced stablecoins used in UK payments, signaling tighter constraints on money-like crypto instruments, source: Bank of England. The stated objective is to mitigate run risk and safeguard financial stability as stablecoins integrate into payment rails, which is directly relevant to how retail balances can be used on UK-facing platforms, source: Bank of England. The measure is at the proposal stage and would take effect only after consultation and rulemaking, meaning no immediate trading changes until finalized, source: Bank of England.

According to Miles Deutscher, retail Bitcoin ($BTC) holdings are declining while large investor holdings are increasing. This indicates a transfer from smaller individuals to big players and ETFs, signaling Bitcoin's growing institutionalization.