UK-based cryptocurrency trading group CryptoUK has welcomed reports that the Bank of England (BoE) plans to begin consultations on stablecoin regulation in November, saying alignment with US policy will strengthen confidence in the country’s digital asset industry.
In comments sent to Cointelegraph, a CryptoUK spokesperson said that aligning with the US approach to stablecoin oversight will “bring further confidence to the industry” and ensure the UK is “aligned” with its global peers.
“Ultimately, it is important that the UK keeps pace with the US and other jurisdictions. The crypto industry is truly global, and that means a rapidly changing competitive landscape for member states,” the spokesperson said.
The group added that the crypto sector is already benefiting from “regulatory tailwinds from the US,” a nod to the US’ more aggressive push to integrate stablecoins into mainstream finance under the GENIUS Act.
UK central bank sets target for stablecoin system by end of 2026
On Friday, Bloomberg reported that the Bank of England (BoE) aims to introduce new stablecoin regulations by the end of 2026.
The central bank will hold talks on November 10 to propose a framework closely modeled on U.S. rules, the report said.
Bloomberg cited unnamed sources as saying the BoE wants to ensure the UK’s regulatory framework is in line with the US, where policymakers are moving ahead with stablecoin legislation.
This means that future rules may require issuers to hold maturing bonds or notes, mirroring U.S. standards.
The move follows pressure from Britain’s Treasury, which has reportedly asked the central bank to act quickly amid concerns the country risks losing its status to other jurisdictions.
BoE Governor Andrew Bailey recently acknowledged the potential role of stablecoins in modern payments.
On October 1, Mr. Bailey wrote in an op-ed in the Financial Times that stablecoins have the potential to reduce dependence on the UK’s commercial banks, signaling a change in banks’ attitudes towards digital assets.
Related: BoE signals flexibility on stablecoin cap amid industry pushback: Report
Toward a friendlier direction for cryptocurrency finance
The push for a stablecoin framework follows a broader shift towards a more crypto-friendly environment in the UK financial sector.
On October 9, the Financial Conduct Authority (FCA) lifted its four-year ban on crypto exchange-traded notes (ETNs), allowing investors to gain exposure to digital assets through regulated venues such as the London Stock Exchange.
This move was followed by asset management firm BlackRock launching a Bitcoin exchange-traded product (ETP) in the UK.
Additionally, the FCA has also allowed asset managers to use blockchain to tokenize funds. This is in line with the government’s vision to make the UK a hub for tokenized finance.
These developments suggest that the UK is inching closer to an innovation-friendly regulated model aimed at competing with other jurisdictions in attracting crypto capital.
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