The Bank of England said it will move at the same pace as the United States to roll out a regulatory framework for stablecoins, affecting issuers, exchanges and investors who use these digital currencies as a means of payment. It plans a consultation on 10 November 2025 and targets an operational rollout in 2026 to avoid a regulatory lag versus the U.S. GENIUS Act.
The GENIUS Act, signed on 18 July 2025, requires 1:1 backing in high-quality liquid assets and prohibits the payment of interest on stablecoins. It establishes periodic reserve disclosures, sets a federal supervision threshold for issuers with more than $10 billion, and allows state-level regulation for smaller players.
In the United Kingdom, the BoE and the Financial Conduct Authority will coordinate supervision: the BoE will oversee systemic stablecoins and the FCA the rest, a scheme intended to mitigate macrofinancial risks without stifling innovation.
The British plan provisionally includes holding limits of £20,000 for individuals and £10 million for companies. Deputy Governor Sarah Breeden has justified these figures by differences in mortgage markets and to protect bank liquidity during the transition, noting the limits could be relaxed or removed after stability assessments, with exemptions for large exchanges and institutional investors under consideration.
The United Kingdom and the U.S. launched a joint working group in September 2025, with recommendations expected by March 2026 to harmonize requirements and facilitate cross-border flows. The announcement places the United Kingdom on a path of convergence with U.S. rules, according to the communication cited by Bloomberg, as the BoE seeks to mirror the speed of the American framework.
Regulation by Boe and U.S.
The framework under discussion in London will replicate key elements of the GENIUS Act: segregated reserves, transparency and creditor priority in insolvency proceedings. These measures seek to reduce regulatory arbitrage and increase confidence in stablecoins as a regulated means of payment.
The exact definition and scope of licenses, penalties and disclosure frequency will be subject to the 10 November consultation. The promised synchronization may accelerate adoption and reduce regulatory fragmentation, but it also imposes compliance costs and possible liquidity constraints in the initial phase.
The next verifiable milestone is the publication of the BoE consultation document on 10 November 2025; that roadmap will determine the final scope of requirements for issuers and custodians of stablecoins in the United Kingdom.
