The post BOE Deputy Governor Says UK Stablecoin Rules Will Arrive ‘As Quickly as the US’ appeared first on Coinpedia Fintech News
The UK is racing to catch up with the US as global competition to regulate stablecoins has been heating up. While the US’ Genius Act has fueled massive interest for stablecoins worldwide, the UK is also working to finalize its own framework by the end of next year.
BOE Targets Systemic Stablecoins
According to a report from Bloomberg, Bank of England Deputy Governor Sarah Breeden said the UK will have its stablecoin rules ready “as quickly as the US,” pushing back on claims that it is lagging behind.
Breeden also confirmed that the BoE is ready to release its stablecoin consultation paper on November 10. According to Reuters, the BOE’s proposal will only apply to “systemic” stablecoins, which could widely be used for payments. Other stablecoins will fall under the Financial Conduct Authority’s supervision, under a less stringent regime.
Speaking at the SALT conference in London, Breeden said she has been in talks with the US Federal Reserve and that both countries’ regulators and finance ministries are working together.
Breeden also dismissed the concerns that the UK is falling behind after the Trump administration’s Genius Act boosted US momentum. “Our aim is to make sure that our regime is up and running, just as quickly as the US,” she said.
The proposal is expected to include temporary limits, £20,000 for individuals and £10 million for businesses, with some exemptions. The BOE hopes to have the new rules in place by the end of next year to keep up with the US.
Why UK Remains Cautious
Breeden noted the concerns around the UK’s cautious approach stems from its mortgage market, which relies heavily on lending from commercial banks.
She noted that the temporary caps are designed to protect financial stability and will be removed once the BOE is confident that stablecoins will not hurt banks or the mortgage sector.
UK’s Push For Stablecoins
The US’ strong support for stablecoins is pushing other countries to step up for stablecoin regulations.
In September, the US and UK governments launched a joint task force to boost their collaboration on digital assets and capital markets.
Last month, the UK government also revealed plans to appoint a “digital markets champion” to help modernize its financial markets using blockchain. The FCA also recently ended its four-year ban on crypto exchange-traded notes, expanding access beyong professional investors.
Global Momentum Builds for Stablecoin Regulation
Recently Canada also revealed plans to regulate fiat-backed stablecoins, requiring issuers to hold adequate reserves, manage risks, and protect user data.
These moves show how countries around the world are working to build clear and safe rules for stablecoins while balancing innovation with stability.
