TL;DR
- Bank of England Deputy Governor Sarah Breeden says the UK will roll out stablecoin regulations "just as quickly as the US."
- The comments come amid concerns that the UK is falling behind after the US passed the GENIUS Act earlier this year.
- Coordination between US and UK regulators is ongoing, with a consultation paper on stablecoin rules set for Nov. 10.
- Canada has also announced plans to regulate stablecoins as part of its payments modernization agenda.
- The global regulatory race signals a shift toward formal recognition and oversight of the $310 billion stablecoin industry.
The Bank of England is signalling a clear message to global financial markets: the UK does not intend to fall behind the United States in setting the rules for stablecoins. Speaking at the SALT conference in London, Deputy Governor Sarah Breeden emphasized that the UK will move "just as quickly as the US" to implement its own regulatory framework, underscoring how seriously the country views the growing influence of digital dollars and blockchain-based payment systems.
Her comments come at a time of heightened geopolitical pressure surrounding crypto regulation. The United States passed the landmark GENIUS Act in July, becoming the first major economy to introduce full legislation for stablecoins. The bill not only formalized the role of dollar-pegged tokens but also positioned the US as the global leader in digital currency rules-an advantage the UK cannot afford to ignore.
Breeden made clear that ensuring alignment between the two allies is a priority, particularly given the size of the stablecoin market, which now exceeds $310 billion according to DefiLlama.
"Just as quickly as the US" - UK aims to keep pace
Speaking to Reuters during the SALT conference, Breeden addressed growing concerns among industry stakeholders that the UK risks becoming less competitive. Innovation groups and crypto-focused policy organizations have been warning for months that the country has fallen behind both the US and the EU in digital asset rulemaking.
Her response was blunt and meant to reassure: the UK will not drag its feet. Breeden said regulators are actively coordinating with US counterparts ahead of a major policy release expected in just a few days.
The Bank of England's stablecoin consultation paper-set for publication on Nov. 10-will clarify the UK's approach to how fiat-backed digital assets should be issued, backed, and supervised. It is expected to cover authorized issuers, custodians, reserve rules, redemptions, and the role of banks in integrating stablecoin infrastructure.
The UK Treasury has previously said that clear rules on stablecoins will unlock new forms of digital payments and reduce friction in financial services. But until now, progress has been slow and fragmented.
Why the UK can't afford to fall behind
For a country aiming to maintain its status as one of the world's premier financial centers, the rise of stablecoins presents both a challenge and an opportunity. The challenge lies in the speed of global adoption: stablecoins have become essential rails for global payments, crypto trading, fintech applications, and dollar access in emerging markets.
The opportunity lies in shaping how those rails are governed. In July, when the US passed the GENIUS Act, the policy shockwave reverberated throughout Europe and Asia. The Act granted fully regulated pathways for US-dollar stablecoin issuance and laid out strict transparency and custody rules. Almost immediately, USDC issuer Circle and several major banks began exploring new payment products that rely on regulated digital dollars.
For the UK, falling behind in this race could erode London's influence in the global financial system-especially as stablecoins become a competitive tool for both public and private sectors. Breeden made it clear that the UK sees these risks and intends to stay in sync with the US, not only to maintain competitiveness but also to ensure interoperability between both countries' financial systems.
US-UK crypto policy coordination intensifies
Breeden's remarks build on growing cooperation between the two countries. In September, UK Chancellor Rachel Reeves met with US Treasury Secretary Scott Bessent, and the pair agreed to strengthen bilateral work on crypto and stablecoin policy. The meeting came shortly after UK crypto advocacy groups publicly urged regulators to adopt a clearer and more innovation-friendly stance.
The Bank of England's upcoming consultation paper will be a major milestone in that direction. The document is expected to outline how stablecoins can be used in retail and wholesale payments, how issuers must operate, and how existing payment institutions should integrate with digital asset infrastructure.
The goal is not simply to legalize stablecoins, but to create a framework that can eventually support institutional-scale digital money systems, ranging from commercial bank stablecoins to tokenized deposits and regulated digital wallets. For the UK, alignment with the US also serves a strategic purpose: maintaining joint oversight over one of the fastest-growing sectors in global finance.
The global race is on: Canada jumps in
The UK is not alone in reacting to the US regulatory breakthrough. Canada also announced a major push into stablecoin regulation this week. The government unveiled new plans requiring issuers to hold fiat reserves, implement strict risk controls, and meet disclosure requirements.
While no timeline has been set, Canadian lawmakers said stablecoin rules will be part of a broader payments modernization project. The country aims to make digital transactions faster and cheaper for its 41.7 million residents, positioning stablecoins as potential tools for consumer payments, remittances, and cross-platform transfers. Canada's move adds pressure on UK policymakers. With North American markets moving quickly, London risks losing ground in the competitiveness race.
What the consultation paper is expected to include
While the exact contents will be published on Nov. 10, policy experts expect the document to address several major areas:
- How fiat-backed stablecoins will be licensed
- Rules for reserve assets (cash, government bonds, etc.)
- Redemption rights for users
- Requirements for custodians and intermediaries
- The role of banks in issuing or supporting stablecoins
- How UK stablecoins will work with the Bank of England's real-time settlement system
The Bank has previously hinted that the UK may eventually support different classes of regulated digital money, including retail stablecoins, wholesale settlement tokens, and tokenized deposits issued by commercial banks. If executed correctly, this could position the UK as a leader in digital finance within the European region.
Final Thoughts
The Bank of England's pledge to keep pace with the United States marks an important moment in the global regulatory race. Stablecoins have already transformed how money moves on the internet. Now, governments are realizing the need to build structured, collaborative frameworks before the market grows beyond their ability to shape it. If the UK delivers on Breeden's promise, it could solidify its role as one of the world's leading hubs for digital finance-bridging the innovation gap between North America and Europe.
But the next steps will be critical. The consultation paper on Nov. 10 will set the tone for the UK's stablecoin era, and industry watchers will be expecting more than reassurances. They want clarity, speed, and a framework that doesn't push innovation elsewhere.
The question now is whether the UK can follow through as swiftly as the US-and whether global regulators can work together as stablecoins continue to reshape the world's financial landscape.
