Michaela
Bank of England Deputy Governor Sarah Breeden has emphasized the need for the United Kingdom and the United States to coordinate their regulatory approaches to stablecoins, noting that alignment between the two financial systems will be key to ensuring stability and trust in the digital asset market.
Key points:
- Bank of England Deputy Governor Sarah Breeden stressed that regulatory alignment between the U.S. and UK is crucial to maintaining stability and trust in the growing stablecoin market.
- The Bank of England will publish its stablecoin consultation on November 10, signaling a softer stance on earlier proposals and a more flexible approach to digital asset oversight.
- Recent U.S.–UK agreements highlight a broader commitment to joint innovation in digital assets, AI, and technology policy, reinforcing both nations’ leadership in shaping global tech standards.
Speaking at the SALT conference in London on Wednesday, Breeden said the Bank of England will release its consultation on stablecoin regulation on November 10, according to Reuters. The consultation is expected to take a softer stance than earlier proposals, marking a potential adjustment in the central bank’s regulatory approach.
“I’ve been talking to the Federal Reserve… The regulators over there and our finance ministries are working together,” Breeden stated.
In September, the United States and the United Kingdom unveiled a joint task force to enhance cooperation on digital assets and capital markets. The agreement also includes initiatives to advance research and development in emerging technologies such as artificial intelligence, strengthen collaboration on nuclear security, and establish a U.S.–UK benchmarking task force to promote innovation and industry confidence.
A memorandum of understanding signed by U.S. President Donald Trump and UK Prime Minister Keir Starmer underscores a shared commitment to advancing leadership in emerging technologies. The agreement aims to strengthen bilateral collaboration, shape global technology standards, and accelerate the commercialization of innovations across key sectors.
Furthermore, in October the Bank of England announced plans to implement temporary caps on stablecoin holdings to safeguard credit availability. Breeden outlined that the limits would range between £10,000 and £20,000 ($13,440–$26,880) for individuals, and up to £10 million ($13.44 million) for businesses using systemic stablecoins in payments. Breeden added that these restrictions would be lifted once the central bank assesses that the transition no longer poses risks to broader economic stability.
Breeden’s remarks spotlight a pivotal moment in the global race to regulate digital assets. As both the U.S. and UK move toward more aligned frameworks, the emphasis is shifting from reactive oversight to proactive coordination, aimed at ensuring innovation doesn’t outpace stability. With upcoming policy consultations and international cooperation deepening, the future of stablecoin regulation appears set to blend caution with ambition.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
