United Kingdom-based crypto trade association CryptoUK welcomed reports that the Bank of England (BoE) plans to launch a consultation on stablecoin regulation in November, saying alignment with United States policy would strengthen confidence in the country’s digital asset industry.
In comments sent to Cointelegraph, a CryptoUK spokesperson said that matching the US’s approach to stablecoin oversight would “provide more confidence to the industry” and ensure that the UK “keeps pace” 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 the competitive landscape shifts quickly for our members,” the spokesperson said.
The group added that the crypto sector is already benefitting from “regulatory tailwinds coming from the US,” a nod to the US’s more assertive push under the GENIUS Act to integrate stablecoins into mainstream finance.
UK central bank targets end of 2026 for stablecoin regime
On Friday, Bloomberg reported that the Bank of England (BoE) aims to have new stablecoin regulations in place by the end of 2026.
According to the report, the central bank plans to open a consultation on Nov. 10 to propose a framework closely modeled on US rules.
Citing anonymous sources, Bloomberg said the BoE wants to make sure that the UK’s regulatory framework keeps pace with the US, where policymakers are advancing stablecoin legislation.
This means the upcoming rules may require issuers to hold government bonds or bills with maturities, mirroring US standards.
The move follows pressure from the UK Treasury, which has reportedly urged the central bank to act swiftly amid fears that the country risks losing ground to other jurisdictions.
BoE Governor Andrew Bailey has recently acknowledged the potential role of stablecoins in modern payments.
On Oct. 1, Bailey wrote in a Financial Times op-ed that stablecoins could reduce the UK’s reliance on commercial banks, signaling a shift in the bank’s stance toward digital assets.
Related: BoE signals flexibility on stablecoin caps amid industry pushback: Report
A friendlier turn for crypto finance
The push for a stablecoin framework follows a broader shift to a more crypto-friendly environment in the UK’s financial sector.
On Oct. 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 like the London Stock Exchange.
The move was followed by asset manager BlackRock launching its Bitcoin exchange-traded product (ETP) in the UK.
In addition, the FCA also authorized asset managers to use blockchain for fund tokenization. This aligns with the government’s vision of turning the UK into a hub for tokenized finance.
These developments suggest that the UK is inching closer to an innovation-friendly and regulated model, which aims to compete with other jurisdictions in attracting crypto capital.
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