The Bank of England publishes a final policy framework for stablecoins that eases parts of earlier proposed rules, according to multiple reports. The updates are framed as the regulator refining how stablecoin issuers and related activities would be supervised and meet expectations around risk management, governance and compliance. While the overall direction of regulation remains in place, the Bank moves away from some stricter requirements contained in earlier consultation drafts.
Across the outlets, the changes are described as “softening” the stablecoin rules in the final document, indicating that some obligations or constraints for market participants are reduced or adjusted compared with prior proposals. The reports also note that the framework is intended to clarify the regulatory perimeter and the standards stablecoin businesses are expected to follow under the Bank’s approach.
The final policy draft is presented as an important step in shaping how stablecoins will be regulated in the UK, with the Bank retaining a supervisory focus on consumer protection and financial stability while adjusting the specifics of the regime from earlier versions.
