Bank of England Targets Swift Rollout of Stablecoin Regulations Matching U.S. Pace

The Bank of England (BOE) is pushing back against claims that the U.K. is falling behind in regulating stablecoins, with Deputy Governor Sarah Breeden emphasizing that the country’s regulatory framework will be implemented “just as quickly as the U.S.” Speaking at a conference on Wednesday, Breeden said the BOE’s goal is to ensure that its stablecoin regime is ready in parallel with U.S. efforts, according to a Bloomberg report.

The U.K. central bank is expected to release its proposed stablecoin regulations on November 10, potentially introducing limits on holdings—£20,000 (about $26,000) for individuals and £10 million for businesses. These proposed restrictions have stirred concern among crypto industry participants, who argue that such measures could stifle adoption. However, Breeden downplayed these worries, suggesting that the impact of these limits would likely be “less of an issue in practice than people might think.”

Breeden explained that the U.K.’s financial system operates differently from that of the U.S., making certain safeguards necessary. Unlike in the U.S., where mortgage financing is largely handled by government-sponsored enterprises like Fannie Mae and Freddie Mac, most U.K. mortgages are funded by commercial banks. This distinction, she said, underscores why setting boundaries on stablecoin usage could be more relevant for the British market during the transition toward digital currencies.

The BOE’s move to introduce a clear framework for stablecoins reflects growing global efforts to regulate the crypto sector without stifling innovation. As digital assets continue to evolve, central banks are racing to strike a balance between financial stability and technological progress. The BOE did not provide further comment following CoinDesk’s request.