Deputy Governor Sarah Breeden confirms that the Bank of England will roll out stablecoin regulations “as quickly as the U.S.”, with plans to introduce holding limits to safeguard the financial system.
U.K. Moves to Keep Pace with Global Stablecoin Oversight
The Bank of England (BOE) has confirmed that the U.K. will implement its stablecoin regulatory framework at a pace comparable to the United States, aiming to establish a secure yet innovative environment for digital assets.
Deputy Governor Sarah Breeden emphasized that the BOE’s approach is designed to balance financial stability with technological progress, ensuring the U.K. remains competitive in the global digital finance race.
Body: Stablecoin Rules Expected to Arrive Soon
Speaking at a financial conference, Breeden stated, “Our aim is to make sure that our regime is up and running, just as quickly as the U.S.” The proposed regulatory package, scheduled for release on November 10, is expected to outline holding limits for stablecoins—a measure aimed at protecting traditional banking systems from potential liquidity shifts.
According to the draft framework, individuals may be restricted to holding up to £20,000 ($26,000) in stablecoins, while businesses could face a cap of £10 million. These restrictions, though controversial among crypto advocates, are viewed by regulators as a necessary safeguard.
Breeden explained that these limits are tied to the structure of the U.K. mortgage market, which heavily relies on commercial bank lending, unlike the U.S. system, where mortgages are largely funded through financial markets via Fannie Mae and Freddie Mac.
“People in the U.S. get their mortgages from Fannie and Freddie, and they’re funded in financial markets,” Breeden noted. “People in the U.K. get their mortgages from commercial banks, and so that need for limits as we transition to a world of stablecoins is one that is less pertinent to the U.S. regime.”
Financial analysts suggest that introducing holding caps could help prevent large-scale outflows from the banking system, ensuring liquidity stability as digital assets gain traction. Industry observers believe that clear regulation could also boost investor confidence, encouraging responsible innovation within the U.K.’s growing crypto ecosystem.
As global competition over digital currency regulation intensifies, the U.K.’s proactive stance signals its intent to remain a leader in financial governance, providing both stability and flexibility as the market for stablecoins continues to expand.
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