Bank of England Revises Its Proposed Regime for Regulating ‘Systemic’ Stablecoin

Wall Street Lawyer

Sebastian J. Barling Simon Toms Joseph A. Kamyar

Bank of England proposals for regulating sterling-denominated stablecoins have shifted since 2023, but remain significantly more onerous than the FCA’s proposals for non-systemic stablecoins in many respects. Partners Simon Toms and Sebastian Barling and associate Joseph Kamyar discuss the bank’s latest proposals — including criteria for systemic importance, asset composition, capital and reserve standards, holding limits, legal claims and safeguarding measures — as well as the next steps for consultation and implementation.
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