The UK regulators have outlined a detailed framework for supervising systemic stablecoins, marking a significant step towards a formal digital money regime tied to sterling by 2026.
The Bank of England and the Financial Conduct Authority have set out how they intend to divide oversight of systemic stablecoin issuers, in a move that brings the UK closer to a formal regime for digital money tied to sterling.
In a joint approach paper published on Friday, the two regulators said the FCA will supervise all UK-issued qualifying stablecoins and, in time, their use in payments, while HM Treasury will retain the power to bring an issuer into the joint BoE-FCA framework by designating it as systemic. The document sits alongside the Bank’s latest policy statement and draft Code of Practice for sterling-denominated systemic stablecoins, which marked a further step towards finalising the UK’s framework by the end of 2026.
The two authorities have split responsibility into three broad areas. The FCA will take the lead on matters such as consumer duty, conduct and market abuse. Some areas will be shared, including operational resilience, record-keeping, and the legal claim and redemption features attached to issuance. The Bank will lead on backing assets, capital and reserve requirements, safeguarding and failure arrangements.
Where the responsibilities overlap, the regulators said they expect to rely on established supervisory tools, including coordination and escalation mechanisms, to manage any friction. The approach paper also sets out how firms already authorised by the FCA could move into the joint regime if they are later judged systemic, as well as a “step-up approach” for issuers deemed systemic at launch.
Under that transitional model, firms could be allowed to hold up to 95% of backing assets in short-term sterling-denominated UK government securities, with the remaining 5% placed in unremunerated central bank deposits. Proportionate capital and reserve requirements would also apply.
The Bank’s separate policy statement on systemic stablecoins went further than earlier proposals by raising the maximum share of backing assets that may be held in interest-bearing instruments to 70% and introducing a temporary issuance guardrail of £40 billion. That consultation remains open until 22 September 2026, while comments on the joint approach document are due by 30 September.
The Bank said it will publish a summary of responses and consider whether wider supervisory frameworks need updating, including its Approach to FMI Supervision. The regulators also indicated they may issue further guidance on how they will work together, and said the FCA will consult on disapplying certain FCA rules for systemic stablecoin issuers once the Bank’s rules are finalised.
The approach paper also noted that the Digital Securities Sandbox will allow the use of certain stablecoins for securities settlement, underlining the authorities’ view that the technology could play a broader role in financial market infrastructure if tightly controlled.
- https://www.jdsupra.com/legalnews/boe-and-uk-fca-set-out-approach-to-9216737/ – Please view link – unable to able to access data
- https://www.bankofengland.co.uk/paper/2026/boe-and-fcas-approach-to-joint-regulation-of-systemic-stablecoin-issuers – The Bank of England and the Financial Conduct Authority (FCA) have published a joint approach document outlining their regulatory framework for systemic stablecoin issuers in the UK. The document details the division of supervisory responsibilities between the two authorities, specifying areas where the FCA will lead, areas of overlapping responsibility, and areas where the Bank will lead. It also discusses transition arrangements for FCA-authorised stablecoin issuers recognised as systemic and the ‘step-up approach’ for firms recognised as systemic at launch. The deadline for comments is 30 September, with further publications expected thereafter.
- https://www.bankofengland.co.uk/paper/2026/sterling-denominated-systemic-stablecoin – The Bank of England has published a policy statement and draft Code of Practice for systemic stablecoin issuers, marking a significant 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. Key policy decisions include increasing the maximum share held in interest-bearing assets to 70% and introducing a temporary issuance guardrail set at £40 billion. The consultation is open until 22 September 2026, with finalisation of the Code of Practice expected by the end of 2026.
- https://www.bankofengland.co.uk/news/2025/november/boe-launches-consultation-on-regulating-systemic-stablecoins – The Bank of England has launched a consultation on its proposed regulatory regime for sterling-denominated systemic stablecoins. The consultation paper outlines how these stablecoins could operate alongside existing payment systems for both retail and wholesale use. Key proposals include permitting issuers to hold up to 60% of backing assets in short-term UK government debt, imposing temporary holding limits, and considering central bank liquidity arrangements to support issuers in times of stress. The consultation is open until 10 February 2026, with final Codes of Practice to be published later in 2026.
- https://www.fca.org.uk/news/statements/fca-and-bank-england-set-out-approach-joint-regulation-systemic-stablecoin-issuers – The Bank of England and the FCA have published a joint approach document outlining how they and other relevant authorities will work together to regulate systemic stablecoin issuers in the UK. The document explains the division of responsibilities between the authorities and how UK stablecoin issuers may transition from FCA supervision to joint regulation once recognised as systemic by HM Treasury. The approach aims to provide clarity and predictability for firms as the market develops.
- https://cincodias.elpais.com/criptoactivos/2025-11-10/el-banco-de-inglaterra-planea-limitar-la-tenencia-de-stablecoins-para-proteger-la-estabilidad-financiera.html – El Banco de Inglaterra ha presentado una propuesta legislativa para regular las monedas estables (stablecoins) clasificadas como sistémicas, con el fin de proteger la estabilidad financiera del Reino Unido. Propone límites temporales de tenencia: hasta £20,000 para particulares y £10 millones para empresas, exceptuando grandes corporaciones, para evitar que estos activos digitales desplacen a los depósitos bancarios tradicionales y socaven la capacidad de crédito de los bancos. Estas restricciones no aplican a las stablecoins utilizadas en mercados mayoristas o en pruebas regulatorias.
- https://www.youtube.com/watch?v=e1fEApen9Es – This video discusses the Bank of England’s launch of a consultation on its proposed regulatory regime for sterling-denominated systemic stablecoins. It outlines key proposals, including backing assets, holding limits, and liquidity arrangements, and provides information on the consultation process and next steps.
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 a joint approach paper published on Friday, which aligns with the Bank of England’s policy statement and draft Code of Practice for systemic stablecoin issuers published on 22 June 2026. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/june/boe-launches-policy-statement-and-draft-rules-on-regulating-systemic-stablecoins?utm_source=openai)) The content appears to be current and not recycled from older sources. However, the specific publication date of the article is not provided, making it difficult to confirm the exact freshness.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Sarah Breeden, Deputy Governor for Financial Stability. A search for these quotes reveals that they were first published in the Bank of England’s policy statement on 22 June 2026. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/june/boe-launches-policy-statement-and-draft-rules-on-regulating-systemic-stablecoins?utm_source=openai)) The quotes are consistent with the original source, indicating they are not reused from other materials. However, without access to the full text of the article, it’s challenging to verify the complete accuracy of the quotes.
Source reliability
Score:
9
Notes:
The article is hosted on JD Supra, a platform that republishes content from various sources, including law firms and financial institutions. The original content appears to be from the Bank of England and the Financial Conduct Authority, both reputable institutions. However, the JD Supra platform itself is not a primary news source, which slightly diminishes the overall reliability score.
Plausibility check
Score:
8
Notes:
The claims made in the article align with the Bank of England’s recent policy statement and draft Code of Practice for systemic stablecoin issuers. ([bankofengland.co.uk](https://www.bankofengland.co.uk/news/2026/june/boe-launches-policy-statement-and-draft-rules-on-regulating-systemic-stablecoins?utm_source=openai)) The division of responsibilities between the FCA and the Bank of England, as well as the proposed regulatory framework, are consistent with previous announcements. No contradictory information was found in other reputable sources, supporting the plausibility of the claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article provides a summary of the Bank of England and the Financial Conduct Authority’s joint approach to regulating systemic stablecoin issuers. While the content aligns with official statements from these institutions, the lack of direct links to the original documents and the use of a secondary platform for publication introduce some uncertainties. Given these factors, the overall assessment is a PASS with MEDIUM confidence.