The Bank of England and UK Financial Conduct Authority have published policy statements outlining the UK’s plans for regulating stablecoins. Partners Sebastian Barling, Mark Chorazak, Lorenzo Corte and Simon Toms and European counsel Eva Legler discuss how the UK is establishing a two-tier approach for systemic and nonsystemic stablecoins, with enhanced regulation for systemic stablecoins. They also address proposed requirements for issuers to secure and safeguard backing assets, enable timely redemption, restrict remuneration and demonstrate transparency through specific disclosure.
Sebastian Barling, Mark Chorazak, Lorenzo Corte, Simon Toms, Joseph Kamyar and Eva Legler contributed to the Skadden memorandum on which The CLS Blue Sky Blog post was based, “As the UK Finalises Its Regulatory Framework for Stablecoins, How Does It Compare Globally?”