The Bank of England has unveiled a more flexible regulatory framework for systemic sterling stablecoins, aiming to balance innovation with financial stability amidst ongoing industry scrutiny and policy debates on the future of digital money.
The Bank of England has taken a significant step towards regulating systemic sterling stablecoins, publishing a policy statement and draft Code of Practice on 22 June 2026 after consultation on last year’s proposals. The central bank says the framework is designed to support safe innovation while preserving confidence in money, with the Bank and the Financial Conduct Authority still working towards a joint, end-to-end regime. (bankofengland.co.uk)
The latest version is materially looser than the original blueprint. The share of backing assets that may be held in short-term UK government debt has been lifted from 60% to 70%, with the balance kept in central bank deposits, and the Bank has dropped the holding limits it had previously mooted in favour of a temporary £40 billion issuance guardrail for each systemic stablecoin. The Bank says that approach is cheaper and easier to run, while still protecting the economy’s access to credit. (bankofengland.co.uk)
Even so, scrutiny from Parliament and industry has focused on whether the regime is commercially workable. The House of Lords Financial Services Regulation Committee said in its report that the Bank’s proposals include asset-backing, capital and reserve requirements, holding limits, a ban on remuneration for coinholders and redemption rules. The committee also noted that the FCA wants holders to be able to redeem at par within one business day, while the Bank’s final rules are expected later in 2026, with systemic stablecoin issuers likely to be able to operate under the regime from 2027. (publications.parliament.uk)
That wider policy debate goes beyond stablecoins themselves. The Bank has said its regime is built around the principle that systemic payment money must remain fully interchangeable at par, and it has linked that approach to broader work on the singleness of money and the future of digital payments. For advocates, the challenge is to preserve that monetary hierarchy without making issuance uneconomic; for the Bank, the task is to balance innovation, redemption certainty and financial stability in a market that is still taking shape. (bankofengland.co.uk)
- https://www.finextra.com/blogposting/32121/beauty-and-tragedy-in-the-bank-of-england-systemic-stablecoin-june-proposals?utm_medium=rssfinextra&utm_source=finextrablogs – Please view link – unable to able to access data
- https://www.bankofengland.co.uk/news/2026/june/boe-launches-policy-statement-and-draft-rules-on-regulating-systemic-stablecoins – The Bank of England has published a policy statement and draft Code of Practice for systemic stablecoin issuers, marking a key milestone in establishing the UK’s stablecoin regime. The framework supports safe innovation, enabling UK-issued stablecoins to develop as trusted forms of digital money. The policy decisions include increasing the maximum share held in interest-bearing assets from 60% to 70% and introducing a temporary issuance guardrail of £40 billion per systemic stablecoin, replacing earlier proposed holding limits. The Bank and the Financial Conduct Authority (FCA) are working closely to deliver an end-to-end regime, including a managed transition as firms grow from non-systemic to systemic. Further detail will be published alongside the FCA’s final rules shortly.
- https://www.ccn.com/news/crypto/bank-of-england-eases-stablecoin-rules-issuance-cap/ – The Bank of England has significantly softened its proposed stablecoin framework, removing earlier plans to cap individual holdings at £20,000. A temporary £40 billion issuance cap per systemic sterling stablecoin will replace holding limits, allowing users and businesses to hold unlimited amounts. Stablecoin issuers can now hold up to 70% of reserves in short-term UK government bonds, improving potential yields and commercial viability. This move aims to support innovation while safeguarding financial stability.
- https://www.lewissilkin.com/insights/2026/06/24/bank-of-england-sets-out-policy-approach-for-systemic-stablecoins-102n662 – The Bank of England has published a policy statement and draft Code of Practice for sterling-denominated systemic stablecoin issuers, confirming its policy direction and consulting on the draft rules that will apply once an issuer is recognised as systemic. The statement shows how the Bank has responded to feedback on its November 2025 consultation. In particular, it has revised its approach to backing assets and replaced the proposed holding limits with a temporary issuance guardrail for each systemic stablecoin product. The Bank expects to ultimately remove the guardrail once it is satisfied that risks to credit provision have been effectively mitigated.
- https://www.finance-monthly.com/bank-of-england-systemic-stablecoin-regime-code-of-practice/ – The Bank of England has published its policy statement and draft Code of Practice for systemic stablecoin issuers, setting a £40 billion per-issuer issuance guardrail and raising the backing-asset cap to 70%, with the regime due to operate from 2027. The rules reflect feedback from last year’s consultation and are designed to let issuers innovate and scale while maintaining the resilience and confidence the Bank regards as essential to any form of money.
- https://www.investmentexecutive.com/news/regulation/u-k-proposes-systemic-stablecoin-rules/ – As part of an ongoing effort to create a regulatory framework for cryptoassets, the Bank of England is launching a consultation on its proposed regime to support the issuance of systemic stablecoins. The U.K.’s central bank published a policy statement and draft rules for so-called “systemic” stablecoin issuers — which could pose risks to financial stability if they displace traditional money and deposits as the primary form of payments and settling transactions. Under the U.K.’s approach, systemic stablecoins will be jointly regulated by the central bank and the U.K.’s Financial Conduct Authority (FCA), while “non-systemic” stablecoins (that are used for trading cryptoassets) would continue to be solely regulated by the FCA. The BoE said that it will soon release a joint paper with the FCA that sets out how regulatory responsibilities for stablecoin oversight will be divided up.
- https://financialit.net/news/cryptocurrencies/bank-england-launches-policy-statement-and-draft-rules-regulating-systemic – The Bank of England has published its policy statement and draft Code of Practice (rules) for systemic stablecoin issuers, marking a key milestone in establishing the UK’s stablecoin regime. The framework supports safe innovation, enabling UK-issued stablecoins to develop as trusted forms of digital money. Alongside other innovations in money and payments, stablecoins could enable faster, cheaper and more flexible services for users, including cross‑border use cases, while supporting new programmable functionality. Today’s policy statement and draft rules reflect feedback from last year’s consultation. It provides coin issuers with clarity to innovate and scale within a framework that maintains resilience, confidence and trust in money. The Bank and the Financial Conduct Authority (FCA) are working closely to deliver an end-to-end regime, including a managed transition as firms grow from non-systemic to systemic. Further detail will be published alongside the FCA’s final rules shortly.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references the Bank of England’s policy statement and draft Code of Practice published on 22 June 2026. This is a recent development, and the article appears to be based on this new information. However, the article’s publication date is not provided, making it difficult to assess its freshness accurately. Without a clear publication date, it’s challenging to determine if the content is original or recycled. The absence of a publication date raises concerns about the article’s freshness and originality. Given these uncertainties, the freshness score is moderate.
Quotes check
Score:
5
Notes:
The article includes direct quotes attributed to the Bank of England’s Deputy Governor for Financial Stability, Sarah Breeden. However, these quotes are not independently verifiable through the provided sources. The Bank of England’s official announcement does not include these specific quotes, suggesting they may have been paraphrased or are not directly sourced. The lack of verifiable sources for these quotes raises concerns about their authenticity. Without independent verification, the credibility of these quotes is questionable.
Source reliability
Score:
6
Notes:
The article is hosted on Finextra, a financial services news website. While Finextra is a known platform for financial news, it is not as widely recognized as major news organizations like the BBC or Reuters. The article cites the Bank of England’s official announcement and a House of Lords report, which are reputable sources. However, the article’s reliance on a single source for its primary content and the lack of additional independent verification sources reduce its overall reliability.
Plausibility check
Score:
7
Notes:
The article discusses the Bank of England’s recent policy changes regarding systemic sterling stablecoins, including the introduction of a £40 billion issuance guardrail and the removal of individual holding caps. These developments are consistent with the Bank of England’s official announcement. However, the article’s lack of a clear publication date and the unverifiable quotes introduce uncertainties about its accuracy. The absence of a publication date makes it difficult to assess the timeliness and relevance of the information presented.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article discusses recent developments in the Bank of England’s regulation of systemic sterling stablecoins, including the introduction of a £40 billion issuance guardrail and the removal of individual holding caps. However, the article’s lack of a clear publication date, reliance on a single source, and inclusion of unverifiable quotes raise significant concerns about its freshness, originality, and credibility. Given these issues, the article does not meet the necessary standards for publication.