Bank of England Vows to Keep Up with US on Stablecoin Regulations
UK races to match US on stablecoin rules
Bank of England Deputy Governor Sarah Breeden says the UK will move “just as quickly as the US” on stablecoin regulation, insisting close coordination between allies is “really important” for a $310 billion market that is expanding fast. Speaking at the SALT conference in London on Wednesday, Breeden said UK authorities are in active talks with US counterparts as the central bank prepares to release its stablecoin consultation paper on Nov. 10. Her comments push back on concerns that Britain is slipping behind the US following passage of the GENIUS Act in July.
Breeden noted ongoing discussions with the Federal Reserve and US regulators, adding that finance ministries on both sides are working in lockstep. The message builds on momentum from a September meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, where both governments agreed to tighten coordination on crypto and stablecoin oversight. UK industry groups have urged a more open stance after warning that the current approach risks ceding innovation abroad.
The central bank has faced criticism over a late-2023 idea to cap individual stablecoin holdings at £10,000 to £20,000, which lobbyists argued would be costly and complex to implement. Breeden’s emphasis on speed and alignment suggests UK policy could evolve toward a more practical, market-aware framework.
Canada is moving too. Ottawa unveiled plans this week to regulate fiat-backed stablecoins, requiring adequate reserves and strong risk management as part of a broader push to modernize payments and make digital transactions faster, cheaper, and more secure for 41.7 million residents. Timelines for formal legislation were not specified.
Institutional adoption is accelerating. Western Union, SWIFT, MoneyGram, and Zelle have either integrated or announced plans to integrate stablecoin solutions in recent months. In April, the US Treasury projected the stablecoin market could reach $2 trillion by 2028, underscoring why regulators are rushing to keep pace.
