The Bank of England has made a pivotal move towards integrating stablecoins into the regulated financial landscape, unveiling draft rules aimed at systemic sterling stablecoin issuers. The new framework, announced on June 22, 2026, eliminates individual holding limits and introduces a temporary £40 billion issuance cap per systemic stablecoin. This shift is seen as a significant step towards enhancing innovation and trust in UK payments, according to Sarah Breeden, Deputy Governor for Financial Stability, who emphasized the importance of strong protections and central bank support. However, industry reactions reveal a complex landscape of cautious optimism and critical concerns, particularly regarding the adequacy of the framework in fostering global competitiveness. While some stakeholders applaud the removal of restrictive limits, others argue that the framework may still be too conservative, potentially hindering the UK's position in the international stablecoin market. The consultation period for feedback on the draft Code of Practice will conclude on September 22, 2026, with final rules expected by the end of the year, allowing regulated stablecoins to operate by 2027.
Source: The Fintech Times
