Bank of England pledges to keep pace with US on stablecoin regulations

Bank of England Deputy Governor Sarah Breeden expects the government to keep pace with the US in stablecoin regulation, stating that it is “really important” for the allies to be synchronized on rules governing the $310 billion industry.

Speaking at the SALT conference in London on Wednesday, Breeden reportedly said the UK will implement a stablecoin regulatory framework “just as quickly as the US” — rebuffing fears that it is falling behind, particularly after the US passed the landmark GENIUS Act in July.

Source: Bloomberg
Breeden confirmed that UK regulators are speaking with US authorities as the Bank of England prepares to publish its stablecoin consultation paper on Nov. 10.

“I’ve been talking to the Federal Reserve […] The regulators over there and our finance ministries are working together.”

The latest remarks builds on momentum from a meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent in September, when the two countries agreed to strengthen their coordination on crypto and stablecoin activities.

The meeting was held after UK crypto advocacy groups urged the UK government to adopt a more open stance toward the industry, claiming that its current approach has left the country lagging in innovation and policy.

The Bank of England was also heavily criticized by lobby groups for proposing in late 2023 to limit individual stablecoin holdings to between 10,000 and 20,000 British pounds ($13,050 and $26,100), claiming it would be difficult and expensive to implement.

Canada looking to make stablecoin moves, too

Canada’s government unveiled a plan to regulate stablecoins on Tuesday, which would require fiat-backed issuers to maintain sufficient reserves and adopt robust risk management measures.

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While the document didn’t specify when the legislation will be tabled, it is part of a broader plan to modernize payments and make digital transactions faster, cheaper, and more secure for the country’s 41.7 million people.

Institutional stablecoin adoption grows

Meanwhile, corporate stablecoin adoption is on the rise, with the likes of Western Union, SWIFT, MoneyGram, and Zelle integrating, or announcing plans to integrate, stablecoin solutions in recent months.

In April, the US Treasury estimated the $310 billion stablecoin market will grow into a $2 trillion industry by 2028.

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