Bank Of England Says UK Won’t Be Left Behind US On Stablecoins, Will Unveil Proposed Rules Monday

The Bank of England said the UK won’t be left behind in the global stablecoin race, pledging that Britain will move “just as quickly as the US” after Washington’s passage of the landmark GENIUS Act.

Speaking at the SALT conference in London on Nov. 5, Deputy Governor Sarah Breeden said the UK is determined to match the pace set by the US as the stablecoin sector’s market capitalization surges past $306 billion.

Stablecoin market cap (Source: DefiLlama)

Her comments come amid growing concern that the UK risks lagging behind the US and other jurisdictions in shaping crypto policy. The US has taken the lead with the GENIUS Act, which defines who may issue stablecoins, how they must be backed, and the regulatory standards they must meet.

Bank Of England To Publish Consultation Paper Next Week

The central bank will unveil its proposed stablecoin rules on Monday through a consultation paper outlining how it plans to oversee so-called “systemic” tokens.

The upcoming consultation paper builds on momentum from a September meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent after the US and UK governments announced a joint task force aimed at boosting collaboration on crypto and capital markets. 

Breeden said that the Bank of England’s proposals will only apply to “systemic” stablecoins, or tokens that are deemed capable of becoming widely used for payments. The rest of the tokens in the market will be regulated by the Financial Conduct Authority under a less stringent regime, the report added. 

Bank Of England Faced Criticism For Stablecoin Restrictions

Breeden’s comments come after the Bank of England faced strong pushback from lobbying groups for its plans to impose restrictions on stablecoin holdings to between £10,000 ($13,050) and £20,000. 

The lobby groups argued that the planned restrictions would be difficult and expensive to implement. Meanwhile, UK crypto advocacy groups have also urged the UK government to adopt a more open stance towards the digital asset industry. 

GENIUS Act Sparked Global Stablecoin Race

The US GENIUS Act, signed into law in July, kicked off a global stablecoin race with governments worldwide now looking at ways to regulate the market for these tokens. 

In addition to the UK now trying to keep pace with the US, the Canadian government has also unveiled its own stablecoin legislation plans. 

In its 2025 federal budget, the Canadian government said that its legislation will require stablecoin issuers to hold and manage adequate reserves, implement risk management frameworks, safeguard users’ personal information, and establish redemption policies. 

“The legislation will also include national security safeguards to support the integrity of the framework so that fiat-backed stablecoins are safe and secure for consumers and businesses to use,” the government said. 

Additionally, Canada’s central bank plans to keep $10 million from its Consolidated Revenue Fund remittances over the two years starting in 2026-2027 to administer the legislation. Thereafter, the estimated $5 million admin costs will be covered by fees on the stablecoin issuers that are regulated under the legislation.