Bank of England to Unveil Stablecoin Regulatory Regime, Keeping Pace With US

The Bank of England (BOE) is preparing to release its long-awaited regulatory framework for stablecoins, aiming to match the pace of US developments in digital asset oversight, according to ￰0￱ Takeaways: The Bank of England will unveil its stablecoin regulatory framework on November 10, aiming to align with US ￰1￱ rules will focus on “systemic” stablecoins, while smaller ones fall under the FCA’s lighter ￰2￱ holding caps and a dual-tier system aim to safeguard banks while fostering innovation in digital ￰3￱ Governor Sarah Breeden dismissed suggestions that the UK is trailing behind the U. S., telling Bloomberg that the new regime would become operational “just as quickly as the U.

S.” The BOE will publish its formal consultation on stablecoin regulation on November 10, she confirmed to Reuters. UK’s Dual-Tier Stablecoin Framework Aims to Balance Innovation and Stability The proposed rules will initially target “systemic” stablecoins, those expected to play a significant role in payments, while smaller stablecoins will remain under the Financial Conduct Authority (FCA) with a lighter regulatory ￰4￱ dual approach seeks to balance innovation with financial stability as the use of tokenized money ￰5￱ to Bloomberg, the BOE’s plan will introduce temporary caps on stablecoin holdings: up to £20,000 ($26,000) for individuals and £10 million for ￰6￱ explained that the stricter limits reflect the UK’s bank-dependent mortgage market, which could be vulnerable if deposits shift rapidly into stablecoins.

“Our aim is to make sure that our regime is up and running just as quickly as the U. S.,” Breeden ￰7￱ lobby wants to kill ￰8￱ now they can't kill them – they'll marginalize and ￰9￱ your politician starts talking smack about stablecoins and crypto out of nowhere chances nearing 100% they're being paid or influenced by the bank ￰10￱ — RYAN SΞAN ADAMS – ￰11￱ (@RyanSAdams) November 5, 2025 The move comes amid growing pressure for Britain to stay competitive in the race to regulate digital ￰12￱ month, the government announced plans to appoint a “digital markets champion” to lead blockchain modernization efforts across wholesale finance. Meanwhile, the FCA lifted its four-year ban on crypto exchange-traded notes (ETNs), allowing broader access to these products beyond professional ￰13￱ upcoming framework marks a key step in the UK’s bid to position itself as a leading jurisdiction for responsible crypto innovation and regulatory ￰14￱ to Appoint ‘Digital Markets Champion’ to Oversee Blockchain Transition in Finance As reported, the UK government plans to appoint a “digital markets champion” to accelerate the nation’s shift toward blockchain-based financial infrastructure, according to remarks by Economic Secretary to the Treasury Lucy ￰15￱ new official will coordinate private sector efforts on tokenizing wholesale financial instruments and ensure that innovation aligns with the country’s regulatory ￰16￱ at the Digital Assets Week conference in London, Rigby also announced the creation of the Dematerialisation Market Action Taskforce, a new body focused on replacing paper-based share certificates with digital records to enhance market ￰17￱ initiative is part of the UK’s Wholesale Financial Markets Digital Strategy, which outlines plans for issuing blockchain-based sovereign debt known as “digital gilts” under the DIGIT ￰18￱ month, HM Revenue & Customs (HMRC) also intensified its scrutiny of the crypto sector, sending 65,000 “nudge letters” to investors suspected of underreporting or evading taxes on digital assets, more than double last year’s ￰19￱ data, obtained through a Freedom of Information Act request by accounting firm UHY Hacker Young, shows a 134% increase in warning notices.