The Deputy Governor of the Bank of England, Sarah Breeden, has reportedly said she has been disappointed by the lack of constructive engagement on the bank’s proposed rules to regulate stablecoins pegged to the British pound.
She said that the institution has been “genuinely open” to changing its proposals.
Recall that the proposed regulatory regimen planned to ensure that sterling-denominated stablecoins remain safe and redeemable at face value. The rules also required issuers to be thoroughly supervised by the Bank of England if they were to be designated as systemic by the Treasury, and they must 100% back their coins with high-quality assets.
Some of the key rules include:
- Systemic issuers must hold at least 40% of the reserves as deposits at the Bank of England
- up to 60% in short-term UK government debt
- Coins have to be redeemable at par
- Issuers must maintain very resilient business models
- Stablecoins used predominently for trading have to remain regulated by the country’s FCA.