Bank of England Publishes Draft Rules for Systemic Stablecoin Regulation
The Bank of England has unveiled its policy statement along with a draft Code of Practice aimed at systemic stablecoin issuers, representing a crucial advancement in the UK's stablecoin framework. This initiative is designed to promote secure innovation for stablecoins issued in the UK, positioning them as reliable digital currency and improving payment solutions. The Bank, in collaboration with the Financial Conduct Authority (FCA), is facilitating a structured transition for companies moving from non-systemic to systemic status. Notable changes include increasing the allowable share of backing assets in interest-bearing instruments from 60% to 70% and setting a temporary issuance cap of £40 billion for systemic stablecoins. The final Code of Practice is anticipated by the end of 2026, with regulated stablecoins expected to operate in the UK starting in 2027, while non-systemic stablecoins will continue to be overseen by the FCA.
Key facts
- Bank of England published policy statement and draft Code of Practice for systemic stablecoin issuers on 22 June 2026.
- Maximum share of backing assets in interest-bearing assets increased from 60% to 70%.
- Temporary issuance guardrail set at £40 billion per systemic stablecoin, replacing holding limits.
- Feedback deadline is 22 September 2026; final Code of Practice expected by end of 2026.
- Regulated stablecoins to operate in the UK from 2027.
- Regime does not cover stablecoins used for non-systemic purposes like cryptoasset trading.
- Bank of England and FCA working together on end-to-end regime.
- Sarah Breeden, Deputy Governor for Financial Stability, commented on the milestone.
Entities
Institutions
- Bank of England
- Financial Conduct Authority (FCA)
- HM Treasury
Locations
- United Kingdom