Bank of England’s Stablecoin Rules Drop November 10 - Crypto Markets Brace for Impact

The regulatory hammer drops November 10 as the Bank of England unveils its stablecoin framework—traditional finance finally catching up to digital currency reality.

What's at Stake

Central bankers scramble to tame the crypto beast while maintaining their relevance in a decentralized world. The November 10 announcement marks their latest attempt to regulate what they can't control.

Market Implications

Clear rules could legitimize stablecoins overnight—or strangle innovation with bureaucratic red tape. Either way, the financial establishment demonstrates its favorite pastime: writing rules for technology they barely understand while collecting taxpayer-funded salaries.

The countdown begins for an industry that's been operating in regulatory limbo for years. Watch traditional banks suddenly discover 'blockchain expertise' the moment regulations drop—convenient timing for institutions that mocked crypto until they couldn't ignore it anymore.

Temporary limits and why they matter

The proposed regulations will include temporary limits: up to £20,000 ($26,000) for individuals and £10 million for businesses, as per the Bloomberg report. These caps are expected to remain in place until the Bank of England is satisfied that stablecoins do not threaten banks or mortgage availability.

Breeden also acknowledged concerns about the limits but said they are “less of an issue in practice than people might think.”

“People in the UK get their mortgages from commercial banks and so that issue that we talked about, about the need for limits as we transition to a world of stablecoins is one that is less pertinent to the US regime,” she added.

She explained that the UK’s cautious approach reflects how mortgages are mostly funded through commercial banks, unlike in the U.S., where they come from government-backed entities and financial markets.

Bailey on stablecoins

Previously, the Bank of England had cautioned that stablecoins could undermine trust in traditional money if they became too popular. Governor Andrew Bailey said central banks need to “watch carefully” how payment systems are changing, noting that if stablecoins emerge as a new FORM of money, it will be important to maintain trust in the currency.

Last month, Bailey highlighted that being cautious does not mean opposing stablecoins. He emphasized that the UK should benefit from the technology while keeping safeguards similar to those applied to traditional money. He has even hinted that a consultation paper outlining the proposed regime will be published in the coming months.

Meanwhile, Canada also introduced its first federal rules for stablecoins under the 2025 budget. The Bank of Canada will spend $10 million over two years to oversee the rollout, with ongoing costs of about $5 million per year to be recovered from regulated stablecoin issuers.

Together, the UK and Canada’s steps show that major economies are moving to establish structured oversight for stablecoins, balancing innovation with financial stability.

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