Bank of England to align stablecoin regulations with US

The Bank of England (BoE) and the United States have announced plans to coordinate on stablecoin regulations. This effort ensures synchronized oversight of digital assets, reflecting the shared priority of both nations to establish effective regulatory frameworks for stablecoins.

Deputy Governor Sarah Breeden of the Bank of England emphasized the significance of harmonizing regulatory approaches between the UK and the US. This collaboration aims to create effective and consistent regulations for stablecoins, enabling both governments to address industry concerns while ensuring regulatory efficiency.

Bank of England officials stressed the critical need for the UK and US to maintain synchronized regulations for stablecoins. Such cooperation is seen as key to supporting global harmonization and avoiding regulatory gaps, which could otherwise delay the establishment of a competitive stablecoin regime.

The coordination effort particularly targets digital assets that maintain price stability through various backing mechanisms. By focusing on these aspects, regulatory measures aim to ensure that stablecoins meet high standards of reliability and consumer protection.

The Bank of England has indicated that proposed UK regulatory measures might include holding restrictions for stablecoins. These restrictions would form part of a broader regulatory framework designed to address the unique attributes and risks posed by these digital assets.