Bank of England is showing signs that it may ease parts of its proposed stablecoin framework
The Bank of England is showing signs that it may ease parts of its proposed stablecoin framework after strong criticism from crypto companies, legal experts, and digital asset advocates who argue that some of the rules could make sterling-backed stablecoins commercially unattractive and drive innovation outside the UK. At the center of the debate is how Britain should regulate stablecoins that could eventually become widely used for payments and settlements. While the Bank says the framework is designed to protect financial stability and consumer trust, critics warn that the UK risks falling behind the United States and the European Union as those jurisdictions move faster to establish workable digital asset regimes. Bank of England says it is willing to adjust proposals The Bank of England launched its consultation on systemic sterling stablecoins in November, setting out rules for issuers whose tokens could become large enough to pose broader financial stability risks. Deputy Governor Sarah Breeden later told lawmakers that the central bank remained open to revisiting aspects of the framework after receiving industry feedback. “Today‘s proposals mark a pivotal step towards implementing the UK’s stablecoin regime next year,” Breeden said in the Banks consultation announcement. “Our objective remains to support innovation and build trust in