Bank of England to Introduce Stablecoin Regulation Consultation on November 10

The Bank of England is poised to launch a pivotal consultation on stablecoin regulation come November 10, marking a significant step in the UK's approach to digital asset oversight. The initiative aims to align with global regulatory trends, particularly those emerging in the United States, while addressing domestic financial stability concerns.

Proposed measures include temporary caps on stablecoin holdings for both individuals and businesses, with a clear focus on systemic stablecoins widely used for payments. These will face stringent oversight, while non-systemic variants fall under a lighter framework administered by the Financial Conduct Authority.

Deputy Governor Sarah Breeden has dismissed notions of the UK lagging in regulatory progress, emphasizing the need to safeguard a mortgage market heavily reliant on traditional banking systems. The consultation reflects growing recognition of stablecoins' potential to reshape payment infrastructures—and the risks they pose if left unchecked.