As global regulators intensify their focus on stablecoins, the United Kingdom is signaling its commitment to keeping pace with the United States. With the US progressing through landmark legislation like the GENIUS Act, the UK aims to establish a comprehensive regulatory framework for its $310 billion stablecoin market, emphasizing cooperation and alignment with its international counterparts. This move underscores the increasing importance of clear cryptocurrency regulation to foster innovation while ensuring financial stability in the evolving blockchain landscape.
Bank of England Deputy Governor Sarah Breeden has emphasized the importance of synchronized stablecoin regulations between the UK and the US. Speaking at the SALT conference in London, Breeden reaffirmed the UK’s aim to implement a regulatory framework “just as quickly as the US,” countering concerns that the UK might lag behind following the passage of the US GENIUS Act in July. This legislation marks a significant milestone in the evolution of crypto regulation in the US, paving the way for mainstream adoption of blockchain-based financial products.
Breeden also confirmed that UK regulators are actively engaging with their US counterparts in preparation for the upcoming publication of the UK’s stablecoin consultation paper, scheduled for November 10. “I’ve been talking to the Federal Reserve… The regulators over there and our finance ministries are working together,” she stated. This collaborative stance builds on the momentum generated by a September meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, during which both parties agreed to strengthen cooperation over crypto and stablecoin policy development.
Following pressure from local crypto advocacy groups—who criticized the Bank of England’s late 2023 proposal to limit individual stablecoin holdings to between 10,000 and 20,000 British pounds—the UK is under pressure to balance regulation with innovation. These groups argue that such restrictions could hinder industry growth and be costly to enforce.
Canada’s Stablecoin Regulatory Plans
The Canadian government unveiled new proposals Tuesday to regulate stablecoins, which would require issuers backed by fiat to hold sufficient reserves and implement comprehensive risk management frameworks. Although legislative timelines remain unconfirmed, the initiative indicates Canada’s broader effort to modernize digital payments—aiming to make transactions faster, cheaper, and more secure for its 41.7 million residents.
Widespread Institutional Adoption
Meanwhile, the use of stablecoins within the traditional financial sector continues to grow. Major firms such as Western Union, SWIFT, MoneyGram, and Zelle are either already integrating stablecoin solutions or announcing plans to incorporate them into their services. This trend highlights the increasing acceptance of blockchain and stablecoins in mainstream finance and cross-border payments.
In April, the US Treasury projected that the $310 billion stablecoin industry could expand to a $2 trillion market by 2028, reflecting the sector’s rapid growth potential within the broader crypto market, which remains a key area of focus for regulators aiming to balance innovation with consumer protections.