Bank of England Accelerates Stablecoin Regulation to Match U.S. Pace
The Bank of England (BOE) is fast-tracking its stablecoin regulatory framework, aiming to align with recent U.S. advancements. Deputy Governor Sarah Breeden emphasized the U.K.'s commitment to timely implementation, with a consultation paper set for release on November 10.
The framework will prioritize "systemic" stablecoins—those widely used for payments—while smaller tokens face lighter oversight by the Financial Conduct Authority. Temporary holding caps of £20,000 for individuals and £10 million for businesses aim to safeguard the U.K.'s banking system from destabilizing liquidity shifts.
The MOVE reflects growing pressure to remain competitive with U.S. regulatory progress, where stablecoin legislation has already gained traction. The U.K. government recently announced plans to appoint a "digital markets champion" to bolster blockchain adoption in finance.
