The post Bank of England to Introduce Stablecoin Regulation by 2026 appeared on BitcoinEthereumNews.com.

Key Highlights The Bank of England has set a definitive timeline to introduce a regulatory framework for stablecoins by the end of 2026 The proposed framework mandates that stablecoin issuers must back their coins primarily with high-quality, short-term government bonds The Bank of England will exempt crypto exchanges and settlement firms from the initial proposed holdings caps While countries like the U.S. are adopting stablecoins to boost their USD dominance, the Bank of England is also now preparing to integrate stablecoins into the mainstream financial system.  Bloomberg reports that the Bank of England plans to introduce stablecoin regulations by the end of 2026, with a public consultation set to begin on November 10, 2025. The proposed framework will take cues from U.S. rules, requiring reserve assets to consist primarily of… — Wu Blockchain (@WuBlockchain) October 17, 2025 According to the latest report, the Bank of England plans to introduce a full set of regulations for these digital currencies by the end of 2026. By introducing a clear regulatory framework, the country wants to manage the risks that come with stablecoins.  The cumulative market capitalization of stablecoin currently revolves around $307.31 billion, according to DefiLIama.  The proposed UK framework is modeled closely on guidelines from the United States. The core of the plans requires companies that issue stablecoins to hold very safe and liquid assets to back the value of their coins.  Specifically, these reserves must be primarily high-quality, short-term government bonds that mature in less than three months. This approach is designed to ensure that people can always exchange their stablecoins for real currency. This will ensure that the digital currency is fully pegged to its underlying assets.  This rule would also allow a small portion of the reserves to earn interest, which could encourage more companies to issue sterling-based…

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Filed under: News - @ October 18, 2025 4:24 am