UK to regulate stablecoins in US style…"Industry welcomes"

CryptoUK, the UK's virtual asset (cryptocurrency) industry association, welcomed the news that the Bank of England (BoE) will publish a draft of stablecoin regulations in November. The association emphasized that "regulatory alignment with the United States is a key factor in boosting trust in the UK's digital asset industry and preventing it from falling behind in global competition."

On the 21st (local time), according to CoinDesk, a CryptoUK spokesperson said in a comment to Cointelegraph that "the crypto industry is inherently global, and it is essential to be aligned with the United States," adding that "recent US moves to integrate stablecoins into mainstream finance through the GENIUS Act are providing a positive regulatory tailwind for the UK industry."

Bloomberg reported that the Bank of England aims to start publishing the stablecoin proposal on November 10 and to establish the final framework by the end of 2026. The new proposal is expected to include measures similar to those in the US that require issuers to hold safe assets such as government bonds or short-term government securities.

This is said to follow calls from the UK Treasury urging rapid action, saying "the UK is falling behind other countries."

Andrew Bailey, governor of the Bank of England, recently wrote in the Financial Times (FT) that "stablecoins have the potential to reduce the UK's reliance on commercial banks," showing a flexible stance on digital assets.

The move shows that UK financial authorities are gradually shifting to a more crypto-friendly stance. Earlier, on October 9, the Financial Conduct Authority (FCA) lifted a four-year ban on retail investment in cryptocurrency exchange-traded notes (ETNs), and BlackRock then listed a Bitcoin exchange-traded product (ETP) on the London Stock Exchange (LSE).

The FCA also allowed asset managers to use blockchain-based tokenisation in fund management. This aligns with the UK government's 'tokenisation financial hub' strategy.

These changes demonstrate the UK's intention to bring the crypto industry into the mainstream and align regulatory consistency with major competitors such as the US and Europe to become an "innovation-friendly financial centre."