The United Kingdom-based crypto trade association CryptoUK has expressed its welcome for reports indicating that the Bank of England (BoE) plans to initiate a consultation on stablecoin regulation in November. CryptoUK believes that aligning with United States policy would significantly strengthen confidence in the country’s digital asset industry.
In comments provided to Cointelegraph, a spokesperson for CryptoUK stated that mirroring the US approach to stablecoin oversight would "provide more confidence to the industry" and ensure that the UK "keeps pace" with its global counterparts. The spokesperson elaborated, "Ultimately, it is important that the UK keeps pace with the US and other jurisdictions – the crypto industry is truly global and that means the competitive landscape shifts quickly for our members."
The association further noted that the crypto sector is already experiencing benefits from "regulatory tailwinds coming from the US." This observation references the US's more proactive efforts, such as the GENIUS Act, aimed at integrating stablecoins into mainstream financial systems.
UK Central Bank Targets End of 2026 for Stablecoin Regime
Reports from Bloomberg on Friday indicated that the Bank of England (BoE) aims to have new stablecoin regulations established by the end of 2026. According to the report, the central bank intends to commence a consultation on November 10th, proposing a framework that closely resembles US regulations.
Citing anonymous sources, Bloomberg further reported that the BoE's objective is to ensure that the UK's regulatory framework remains current with that of the US, where policymakers are actively advancing stablecoin legislation. Consequently, the forthcoming rules may mandate that issuers hold government bonds or bills with specific maturities, thereby aligning with US standards.
This development follows pressure from the UK Treasury, which has reportedly encouraged the central bank to act with urgency, driven by concerns that the country might fall behind other jurisdictions. Bank of England Governor Andrew Bailey has recently acknowledged the potential utility of stablecoins in modern payment systems. In an op-ed published in the Financial Times on October 1st, Bailey suggested that stablecoins could reduce the UK's dependence on commercial banks, signaling a potential shift in the bank's perspective on digital assets.
A Friendlier Turn for Crypto Finance
The push for a stablecoin framework is part of a broader trend towards a more receptive environment for cryptocurrency within the UK's financial sector. On October 9th, the Financial Conduct Authority (FCA) lifted its four-year prohibition on crypto exchange-traded notes (ETNs). This decision now allows investors to access digital assets through regulated platforms such as the London Stock Exchange.
Following this announcement, asset manager BlackRock proceeded to launch its Bitcoin exchange-traded product (ETP) in the UK. Additionally, the FCA has authorized asset managers to utilize blockchain technology for fund tokenization. This move aligns with the government's strategic vision to establish the UK as a central hub for tokenized finance. These collective developments suggest that the UK is progressively moving towards an innovation-friendly and regulated model, aiming to attract cryptocurrency capital and compete effectively with other global jurisdictions.