- UK to announce stablecoin regulations on November 10, involving Bank of England.
- Aligns with US standards, affecting stablecoin issuers and users.
- Impact expected on financial markets and DeFi protocols in the UK.
The UK will roll out a stablecoin regulation consultation on November 10, 2025, spearheaded by the Bank of England alongside the FCA and UK Treasury.
The regulation aligns UK with US standards, affecting stablecoins in digital finance, anticipating reactions in market dynamics and institutional engagement.
The UK will unveil its stablecoin regulation consultation on November 10, 2025. This initiative will be led by the Bank of England, with collaboration from the Financial Conduct Authority and the UK Treasury.
This consultation is primarily spearheaded by the Bank of England, focusing on the regulation of stablecoins used widely for payments. The Financial Conduct Authority and HM Treasury are also key participants in this process. As Sarah Breeden, Deputy Governor, Bank of England stated, “The new rules will arrive just as quickly as those in the U.S., with a framework… focused first on stablecoins used widely for payments.”
Issuers will be required to hold government bonds to back stablecoins, aligning with US standards. This action is expected to have ripple effects across the financial markets.
The consultation will address caps on stablecoin holdings and will likely influence digital asset legislation. Financial implications concern liquidity and compliance for digital finance sectors.
Overall engagement from major exchanges is anticipated, influencing UK’s DeFi protocols. Regulatory changes could result in asset migration and liquidity shifts. The proposed UK framework suggests a significant influence on the regulation landscape.
Experts believe UK’s approach to stablecoin regulations will mirror US standards, promoting global competitiveness.
