Bank of England Deputy Governor Sarah Breeden has commented on recent concerns that the UK is behind the US when it comes to establishing proper stablecoin related oversight / guidelines. Breeden stated that the updated stablecoin regulations should become effective just as quickly as the US. This, according a report from Bloomberg.
The Bank of England Deputy Governor also mentioned that the reserve bank will introduce its consultation on stablecoin regulation on November 10, 2025.
The suggested new rules / guidelines should, at first, be applicable strictly to what the Bank of England considers “systemic” stablecoins. These are expected to be more commonly used for settling payments. Meanwhile, some of the other stablecoins should actually remain within the remit of the Financial Conduct Authority (FCA) under a relatively lighter set of guidelines, the report claimed.
The upcoming proposals should reportedly include temporary limits: as much as £20,000 for individual consumers and £10 million for business organizations.
Breeden explained that the reason for stricter limits in the United Kingdom are due to the nation’s mortgage market being primarily bank-based, tbus making it more susceptible to quick transfers of deposits into stablecoins.
Breeden also stated that their overall aim is to make sure that their framework is up and running, just as quickly as the United States. However, it’s worth noting that being first in everything is not always the best course of action. You not only need to be first, but you also need to be effective. In terms of overall tech advancements and product development, the UK remains well behind the US. And this should not change given that the US economy is much larger and more diverse than that of the UK’s in every aspect.
The Bank of England’s update comes as the United Kingdom deals with increasing pressure to stay competitive with the latest US crypto guidelines and regulations.
The UK government this past month unveiled its plans to appoint a so-called digital markets champion to spearhead ongoing efforts to enhance its wholesale financial markets by leveraging DLT / blockchain tech.
Notably, the UK’s Financial Conduct Authority recently removed its 4-year retail ban on crypto ETNs, which should now help with further expanding availability beyond simply sophisticated investors.