Bank of England Nears Completion of Stablecoin Regulatory Framework

The Bank of England is in the advanced stages of crafting a comprehensive regulatory framework for stablecoins, according to Sasha Mills, the executive director of financial market infrastructure. Speaking at the AFME OPTIC conference in Amsterdam, Mills emphasized that the framework will be forward-looking, designed to foster responsible innovation while adhering to international standards.

Stablecoins, which peg their value to assets like the U.S. dollar, are increasingly seen as potential systemic financial instruments. The UK's approach will focus on those stablecoins widely used as money, distinguishing them from those primarily supporting crypto trading. The regulations will align with global benchmarks, including recommendations from the Financial Stability Board and the Committee on Payments and Market Infrastructures.