Bank of England urged the UK and US to coordinate stablecoin regulations
Bank of England (BoE) Deputy Governor Sarah Breeden urges the US and Britain on Wednesday, November 5, to work together to achieve regulatory alignment regarding stablecoins rules.
Her statement comes just a few days before the Bank of England plans to begin discussions on improving the regulation of stablecoins. Notably, stablecoins are cryptocurrencies that are linked to a fiat currency or another reserve asset.
UK seeks to match US stablecoin rules as industry pushback
The US has already enacted major laws enabling stablecoin issuers to be regulated under the GENIUS Act, leading to concerns that the UK risks being left behind unless regulators in both countries implement synchronized rules.
Alignment with the US could minimize regulatory arbitrage, industry observers say. However, this means that in the future, the UK will have a less flexible ability to adjust its regulations for stablecoins denominated in sterling. Breeden highlighted ongoing work with US authorities, including the Federal Reserve and finance departments, to ensure that regulations were coordinated.
Breeden confirmed that the Bank of England plans to initiate a discussion concerning its proposed rules for stablecoins on November 10, 2025. She mentioned during the London SALT conference, “I’ve been in talks with the Federal Reserve… The regulators there and our finance ministries are collaborating.”
Meanwhile, the Bank of England’s proposals are expected to focus on “systemic” stablecoins. Sources pointed out that these stablecoins are widely used as a payment option. Other stablecoins will be categorized under the regulation of the Financial Conduct Authority with relaxed rules.
However, reliable sources reported that the crypto community has severely condemned the central bank for its plan to set restrictions on the holdings of crypto individuals and businesses. Based on the community, this proposal does not apply to other significant financial centers.
Breeden urges transatlantic rules for stablecoins
Notably, this is not the first time officials have called for the US and the UK to collaborate on the digital asset sector. In September, the governments of both nations announced the establishment of a joint task force to enhance cooperation in capital markets and digital assets. A report highlighted that the new group will be referred to as the Transatlantic Task Force for Markets of the Future.
This task force is under the leadership of the US Treasury Department and His Majesty’s Treasury. Moreover, it comprises prominent financial agencies in both nations that manage digital asset regulations.
Based on their role, the joint task force will determine how both countries can collaborate on regulating digital assets now and in the future. The group is also encouraged to strengthen the connection between American and British capital markets while reducing obstacles for cross-border investments in the crypto space.
The task force said an initial report with policy suggestions will be made public by March 2026. This announcement ignited mixed reactions from individuals. Crypto experts who reacted positively to this plan acknowledged that this strategy could greatly improve various sectors in the crypto industry if implemented.
Meanwhile, James Butterfill, the head of research at CoinShares, weighed in on the topic of discussion. Butterfill noted that the UK lags behind the US in terms of cryptocurrency adoption. Therefore, he argued that this collaboration could play a significant role in “kick-starting” Britain’s digital asset industry.
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