Bank of England warns of stablecoin oversight clash with US
Crypto Briefing
Bank of England Governor Andrew Bailey warns that disparate US and UK stablecoin regulations could create cross-border financial instability.Summary
Bank of England Governor Andrew Bailey has expressed concern regarding a potential regulatory conflict between the UK and the United States over stablecoin oversight. Bailey fears that if US stablecoin redemption standards are insufficient, a market crisis could lead to cross-border contagion, forcing the UK to absorb financial shocks. With the global stablecoin market exceeding $317 billion, the Bank of England is implementing strict reserve and holding requirements, which may clash with evolving US legislative efforts like the GENIUS Act. This regulatory fragmentation threatens the stability of borderless transactions and poses risks to financial systems on both sides of the Atlantic.
(Source：Crypto Briefing)