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The UK central bank will unveil its proposed regime on stablecoin regulations on Monday
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[LONDON] Bank of England (BOE) deputy governor Sarah Breeden said that new stablecoin rules will be up and running “just as quickly as the US”, rebuffing industry concerns that Britain is falling behind on setting up a regime.
Breeden said on Wednesday (Nov 5) that the UK was in a different place to the US on imposing limits for stablecoin holdings because its mortgage market relies on lending by commercial banks.
The UK central bank will unveil its proposed regime on stablecoin regulations on Monday and is expected to impose temporary limits of £20,000 (S$34,119) on individuals and £10 million on businesses. Bloomberg reported last month that the BOE is aiming to have the rules in place by the end of next year in a bid to keep pace with the US, and will include some exemptions to the limits.
Breeden played down concerns that the UK has slipped behind after the Trump administration’s Genius Act fuelled excitement by setting out guidelines to normalise the digital assets that are tied to traditional money.
“Our aim is to make sure that our regime is up and running, just as quickly as the US,” Breeden said in an appearance at a conference in London. She added that it is “really important that we do this together, and it’s a fabulous opportunity”.
One key difference between the UK and US regimes will be on the caps imposed on holdings, with Breeden brushing off concerns over Britain’s more cautious stance. The limits are intended to be temporary and will be lifted once the BOE’s worries over the potential impact of stablecoins on banks and the availability of mortgages ease.
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“I take the point about limits, but I honestly think it is less of an issue in practice than people might think,” she said.
The difference in how UK and US consumers access credit is a key reason for the more wary approach of British regulators, according to Breeden.
“People in the US get their mortgages from Fannie and Freddie, and they are funded in financial markets,” she said. “People in the UK get their mortgages from commercial banks, and so that issue that we talked about, about the need for limits as we transition to a world of stablecoins, is one that is less pertinent to the US regime.” BLOOMBERG
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MDDI (P) 046/10/2024. Published by SPH Media Limited, Co. Regn. No. 202120748H. Copyright © 2025 SPH Media Limited. All rights reserved.
