The Bank of England has announced plans to introduce stablecoin regulations “as quickly as the United States.” The goal is to keep up with key global partners and ensure that the UK’s approach to digital currencies doesn’t fall behind developments in the US.
Deputy Governor Sarah Breeden spoke at the SALT conference in London, emphasizing that aligning regulatory steps between the UK and the US is “crucial” for maintaining stability and trust in a growing sector now valued at over $310 billion.
According to Breeden, the British government is expected to unveil a comprehensive regulatory framework for stablecoins soon. The move comes amid concerns that London is losing its edge in crypto policy, especially after the United States passed the landmark GENIUS Act in July, setting clearer rules for stablecoin issuers.
Breeden also confirmed that UK regulators are in direct contact with their US counterparts. This follows a September meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, where both countries agreed to deepen coordination on cryptocurrencies and stablecoins.
The decision comes after months of pressure from UK crypto organizations urging the government to take a more innovation-friendly stance. The Bank of England also faced backlash last year over a proposal to cap individual stablecoin holdings at £10,000–£20,000, which experts deemed costly and impractical.
Interest in stablecoin regulation is spreading beyond the Atlantic. The Canadian government unveiled a plan on Tuesday requiring issuers of fiat-backed stablecoins to maintain sufficient reserves and follow strict risk management standards. The new legislation forms part of a broader initiative to modernize payment systems and speed up digital transactions for over 41 million Canadians.
Across the Atlantic, institutional adoption of stablecoins is gaining momentum. Companies such as Western Union, SWIFT, MoneyGram, and Zelle have announced integrations or pilot programs using stablecoin-based payment systems.
According to the US Treasury Department’s April estimates, the stablecoin market could grow from today’s $310 billion to as much as $2 trillion by 2028.
Sources:
https://cointelegraph.com/news/england-vows-keep-pace-us-stablecoin-regulation