Bank of England to Launch Stablecoin Regime Aligned With US
The Bank of England has promised to keep pace with the US in developing stablecoin rules, trying to head off worries that the UK might...
Quick overview
- The Bank of England is committed to developing stablecoin regulations in sync with the US to avoid falling behind in the global financial landscape.
- Deputy Governor Sarah Breeden announced that the UK will introduce its regulatory framework quickly, following the US's recent passage of the GENIUS Act.
- Frequent discussions between the BoE and US officials aim to enhance cross-border cooperation on cryptocurrency policy amidst concerns from UK crypto groups about overly restrictive rules.
- Other countries, including Canada, are also advancing stablecoin regulations, indicating a growing global push for oversight in the digital currency market.
The Bank of England has promised to keep pace with the US in developing stablecoin rules, trying to head off worries that the UK might get left behind by its global financial partners. Deputy Governor Sarah Breeden stressed that its crucial the two countries move in sync as they work out how to regulate the £310 billion stablecoin market.
Speaking at the SALT Conference in London, Breeden said that the UK will introduce its regulatory framework just as fast as the US – a move that goes some way to dispelling notions that the UK is lagging behind on regulations. This comes in the wake of the US passing the GENIUS Act in July a major piece of legislation that sets out a comprehensive framework for stablecoins in the US.
✅ Bank of England to Unveil Stablecoin Regulatory Regime, Keeping Pace With US
The Bank of England is preparing to #release its long-awaited regulatory framework for stablecoins, aiming to match the pace of US. #crypto
— CryptOpus (@ImCryptOpus) November 6, 2025
Breeden also confirmed that the BoE is holding frequent discussions with the US and will publish its consultation paper on November 10, 2025. This is a major step towards the UK’s broader aim of positioning itself as a leading player in digital finance.
Strengthening Cross-Border Crypto Cooperation
The UK’s renewed focus on regulations comes after a high level meeting back in September between Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent – where they both committed to working more closely together on cryptocurrency policy.
That meeting came after months of pressure from UK crypto groups, who were warning that the UK’s cautious approach was stifling innovation and investment in the sector.
Some of the key concerns being flagged by industry groups are:
- Overly restrictive rules: The BoE had previously suggested capping individual stablecoin holdings at between £10,000 and £20,000 ($13,050 – $26,100).
- Cost of implementing new rules: Critics say such caps would be a nightmare to enforce.
- Downside for the UK’s competitiveness: Industry leaders are worried that the UK will lose out to the US and EU when it comes to attracting blockchain based firms.
So far though the BoE is sticking to its guns and says that tighter regulation will actually boost trust in the system and keep the economy stable as more and more people start to use digital currencies.
🚨 JUST IN: 🇬🇧 Bank of England drops stablecoin regulation consultation on Nov 10!
Clear rules incoming for USDT, USDC & more – UK pushing to become crypto hub! 🏦💷 pic.twitter.com/DrmIwpabS1— CryptoPulseIn (@CryptoPulseIn) November 6, 2025
Global Push for Stablecoin Oversight
It’s not just Canada and the US – other countries are also getting in on the act with Canada unveiling a draft framework for stablecoin issuers on Tuesday. Under the plan they have to keep full reserves and would need to have proper risk management systems in place. This is part of a broader plan to modernise digital payments and make them more secure for over 41.7 million Canadians.
On top of that institutional investors are getting more and more interested in stablecoins – just look at Western Union, SWIFT, MoneyGram and Zelle – they’ve either started using stablecoin tech or are working on integrating it into their systems. The US Treasury thinks the market will be worth over $2 trillion by 2028 which probably means this race for regulation is only just getting started.
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