The Bank of England will unveil its long-awaited stablecoin regulatory framework on November 10, pledging to implement it as swiftly as the U.S.
The Bank of England (BoE) is set to publish its long-anticipated proposal for regulating stablecoins, aiming to keep pace with the U.S. in establishing clear oversight for digital payment assets. Deputy Governor Sarah Breeden dismissed claims that the U.K. was lagging behind, saying the new regime would be “up and running just as quickly as the U.S.” The consultation paper, expected on November 10, will initially focus on “systemic” stablecoins — those expected to see widespread payment use.
Under the plan, only BoE-designated systemic stablecoins will face strict oversight, while smaller projects will remain under the lighter regulatory framework of the Financial Conduct Authority (FCA). According to Bloomberg, temporary limits will be imposed — £20,000 (about $26,000) for individuals and £10 million for businesses — to mitigate potential financial stability risks.
Breeden explained that the U.K.’s heavy reliance on bank-based mortgage markets makes it vulnerable to rapid deposit outflows into stablecoins. The new framework seeks to safeguard financial stability while fostering innovation. This initiative also underscores the U.K.’s efforts to remain competitive with the U.S. in the digital finance race. Recently, the government announced plans to appoint a “digital markets envoy” and the FCA lifted a four-year retail ban on crypto-based exchange-traded notes (ETNs).
