The United Kingdom will move in lockstep with the United States on stablecoin regulation, according to Bank of England Deputy Governor Sarah Breeden, who confirmed on November 5, 2025, that new rules for stablecoins used in systemic payments will be introduced “just as quickly as in the US.”
Speaking at a digital finance event in London, Breeden said a formal consultation on the framework will open on November 10, setting the stage for the UK’s most comprehensive regulatory effort yet to govern the use of stablecoins in mainstream financial systems.
Temporary Holding Limits and Market Safeguards
Under the proposed rules, the Bank of England plans to impose temporary caps on stablecoin holdings during the rollout phase. Individual users will be limited to £20,000, while businesses can hold up to £10 million in approved stablecoins.
Breeden noted that the limits are designed to ensure a “safe and orderly introduction” of regulated digital currencies, reflecting structural differences between the UK and US mortgage markets and their sensitivity to liquidity dynamics.
Focus on Systemic Payment Use
The Bank of England’s framework will apply only to “systemic” stablecoins, those used for large-scale or critical payment systems. Coins primarily facilitating crypto trading or speculative activity will remain outside the Bank’s direct oversight, as they are considered to pose “limited systemic risk.”
“This is not about regulating every token in existence,” Breeden said. “It’s about ensuring that the stablecoins people use for real-world payments meet the same standards as traditional money.”
Close Coordination with the United States
Breeden emphasized that UK and US regulators are coordinating closely on stablecoin oversight. The joint UK-US Digital Assets and Capital Markets Task Force, established in September 2025, aims to harmonize legal standards and prevent regulatory arbitrage.
The UK’s approach will mirror key aspects of the US GENIUS Act, which requires stablecoin reserves to be held entirely in short-term government debt or Treasury bonds.
A Race to Regulatory Maturity
The announcement underscores a global trend toward institutional adoption and oversight of stablecoins, as major economies seek to integrate tokenized money into their payment systems without compromising financial stability.
With both the Federal Reserve and the Bank of England now advancing on synchronized timelines, the world’s two most influential financial centers appear poised to define the global rulebook for stable digital currencies.
