Bank of England Moves Swiftly to Align with U.S. Stablecoin Regulations, Protecting Its Status as a Leading Global Financial Center

The Bank of England is expediting its stablecoin regulatory plans to keep pace with the U.S., aiming for a 2026 rollout to maintain both financial stability and the nation's competitive edge. Deputy Governor Sir Jon Cunliffe highlighted the necessity for swift action, remarking, "To remain competitive and ensure financial stability, we need to match the speed of our U.S. peers," according to a report by

. This initiative comes amid intensifying international competition, especially after the U.S. passed the GENIUS Act in July, which has heightened global interest in stablecoin regulation, as noted by .

The UK’s regulatory approach closely follows the U.S. model of dual oversight, where the SEC and CFTC treat stablecoins as both securities and commodities, FXStreet reports. The Bank of England’s draft regulations propose temporary limits on stablecoin holdings—£20,000 for individuals and £10 million for companies—with certain exceptions, according to Coinpedia. These restrictions are designed to reduce risks to the mortgage sector, which depends significantly on commercial bank loans, Deputy Governor Sarah Breeden explained in a

. The Bank intends to publish a consultation document on November 10, 2025, with final rules anticipated by the end of 2026, Coinpedia adds.

A central aspect of the UK’s plan is the requirement for stablecoins to be backed by high-quality assets, such as government bonds or short-term securities, as detailed by

. This aligns with the U.S. GENIUS Act and may support international regulatory consistency. Nonetheless, there are ongoing technical hurdles, especially regarding real-time verification and auditing of reserves, Yahoo Finance points out. The Bank of England will consult with industry participants through the first quarter of 2026 to further develop the framework, FXStreet reports.

Working closely with U.S. regulators is a key part of the UK’s approach. Breeden confirmed that discussions with the Federal Reserve and U.S. Treasury are ongoing, referencing a joint task force launched in September to strengthen cooperation on digital assets, according to Reuters. This partnership is intended to avoid fragmented regulations and address possible mismatches in global liquidity, FXStreet notes.

The UK’s stablecoin sector, now worth over $160 billion, processes 40% of DeFi transactions and is vital for international payments, FXStreet states. Regulators caution that any delay could lead to capital moving to countries with looser rules. The main focus is on "systemic" stablecoins used widely for payments, while the Financial Conduct Authority will supervise smaller, non-systemic tokens under lighter rules, Coinpedia reports.

Market analysts observe that the 2026 target gives businesses time to adapt, balancing the need for innovation with financial security. Asset managers could see new opportunities in safeguarding stablecoin reserves, Yahoo Finance suggests. Still, there are doubts about the feasibility of the proposed limits and their effect on adoption. Breeden downplayed these concerns, saying, "In reality, this is less problematic than many assume," according to CoinDesk.

As the UK moves quickly to establish its regulatory regime, the results could set a benchmark for global standards, given London’s prominence as a financial center, Yahoo Finance points out. The next several months will reveal whether swift and coordinated regulation can support both innovation and systemic safety in the fast-changing stablecoin sector.