UK stablecoin regulation aligns with US rules
CryptoUK has welcomed the Bank of England’s public consultation on UK stablecoin regulation launching November 10. The BoE’s proposals mirror US stablecoin rules, requiring issuers to hold government bonds or bills to enhance market confidence and maintain the UK’s competitive edge in digital assets. Under Treasury pressure, the BoE targets implementation by end-2026. Governor Andrew Bailey noted stablecoins’ role in modernizing payments and reducing reliance on banks. This initiative coincides with a broader shift toward a crypto-friendly framework: the FCA lifted its four-year ban on crypto ETNs, authorized blockchain fund tokenization, and saw BlackRock launch its first UK Bitcoin ETP. Clear UK stablecoin regulation is expected to strengthen the digital asset industry and attract institutional capital.
Bullish
The announcement of a US-aligned UK stablecoin regulation reduces legal uncertainty, which encourages institutional participation and supports stablecoin adoption. In the short term, traders may see increased liquidity as market confidence improves. Long term, clear rules should foster innovation, attract capital, and underpin sustained growth in the UK digital asset sector. Combined with other crypto-friendly moves by the FCA and Bank of England, this regulatory clarity signals a bullish outlook for UK crypto markets, especially for stablecoin-related trading and tokenized products such as the newly launched Bitcoin ETP.