UK Aligns Stablecoin Regulation with US Timeline
On November 10, the Bank of England will publish a consultation paper outlining its stablecoin regulation, aiming to align the UK’s framework with the US GENIUS Act timeline. Deputy Governor Sarah Breeden announced detailed rules for digital payment tokens, issuer requirements, operational standards, and risk controls. This response follows coordinated efforts between UK and US regulators and finance ministries after Chancellor Rachel Reeves met US Treasury Secretary Scott Bessent.
The new framework addresses concerns of regulatory lag and seeks to foster innovation while ensuring market stability. Parallel developments include Canada’s 2025 budget proposal for a national stablecoin regime with full reserves and robust controls. Growing corporate demand is evident as Western Union, SWIFT, MoneyGram, and Zelle integrate stablecoin solutions. The US Treasury projects the $310 billion stablecoin market could reach $2 trillion by 2028, underscoring the need for clear, harmonized regulation to support future market growth.
Bullish
Clear stablecoin regulation reduces legal uncertainty and operational risks for issuers and traders. In the short term, alignment with US rules and international coordination can boost market confidence and spur corporate adoption, supporting stablecoin liquidity and trading volumes. Over the long term, harmonized frameworks and robust risk controls are likely to drive further market growth, institutional participation, and wider acceptance of stablecoins in digital payments, making the outlook bullish for the stablecoin market.