The UK government is moving forward with plans to establish a comprehensive regulatory framework for stablecoins by the end of 2026.
Key Regulatory Developments
- Consultation Start: The process kicks off with official consultations on November 10.
- Key Agencies: The framework is a collaborative effort involving HM Treasury, the Financial Conduct Authority (FCA), and the Bank of England (BoE).
- Focus on Stability: The regulation aims to ensure financial stability, with the BoE specifically focused on making sure systemic stablecoins meet stringent safety and resilience standards, comparable to those required of commercial banks. BoE Deputy Governor Sir Jon Cunliffe emphasized this point, stating the goal is to enforce high standards for systemic stablecoins.
- Alignment Goal: A key objective is to synchronize the UK's regulatory approach with US standards, potentially fostering stronger global industry engagement and impact.
- Implementation: HM Treasury is leading the necessary legislative changes under the Financial Services and Markets Act (FSMA), while the FCA will be responsible for overseeing stablecoin custodians and issuers.
This move underscores the UK's commitment to integrating digital assets into its financial system while prioritizing caution and system resilience. The industry is currently awaiting detailed public reactions as the UK solidifies its strategic position in global finance.
October 2025, Cryptoniteuae