The Bank of England will launch a consultation on stablecoin regulation in November, aiming to finalize a US-style regime by 2026.
UK Prepares US-Aligned Stablecoin Rules
The Bank of England (BoE) is preparing to launch a consultation on stablecoin regulation this November, signaling the country’s intent to align its rules with the United States’ approach to fiat-backed crypto assets.
According to a Bloomberg report, the BoE aims to finalize a full regulatory framework by the end of 2026, ensuring that stablecoin issuers meet standards similar to those in the US — including holding short-term government bonds or bills as reserves.
The move follows mounting pressure from the UK Treasury, which has urged the central bank to act swiftly amid fears that the UK risks falling behind other jurisdictions in the digital finance race.
CryptoUK: Alignment Will Boost Confidence
Trade association CryptoUK welcomed the news, saying the BoE’s decision could reinvigorate confidence in the UK’s crypto sector.
“Ultimately, it is important that the UK keeps pace with the US and other jurisdictions – the crypto industry is truly global and that means the competitive landscape shifts quickly for our members,” a CryptoUK spokesperson told Cointelegraph.
The group added that the UK is already benefitting from regulatory tailwinds coming from the US, referencing the GENIUS Act, which integrates stablecoins into mainstream financial systems.
BoE’s Evolving View on Stablecoins
The Bank of England’s stance toward digital assets has softened in recent months. In an October 1 Financial Times op-ed, Governor Andrew Bailey acknowledged that stablecoins could reduce reliance on commercial banks and enhance payment efficiency.
This represents a notable shift from the BoE’s earlier caution, aligning more closely with the Treasury’s vision of a tokenized financial system.
A Broader Crypto Revival in the UK
The upcoming stablecoin framework is part of a wider pro-innovation pivot by UK financial regulators:
- On October 9, the Financial Conduct Authority (FCA) lifted its four-year ban on crypto exchange-traded notes (ETNs), enabling regulated exposure to digital assets via the London Stock Exchange.
- BlackRock quickly launched its Bitcoin exchange-traded product (ETP) in the UK.
- The FCA also authorized blockchain-based fund tokenization, a move that aligns with the government’s ambition to make the UK a hub for tokenized finance.
With the BoE’s consultation scheduled for November 10, and a final regime targeted by end-2026, the UK appears set to mirror US standards to restore its competitiveness in the crypto landscape.
If executed effectively, the reforms could mark the UK’s comeback as a leading center for regulated digital finance — and a key player in the global stablecoin ecosystem.
Disclaimer
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