UK Stablecoin Rules Moving Fast to Match US Timeline, Says Bank Official

Britain’s financial regulators are pushing to get stablecoin rules ready by late 2026, matching the speed of US efforts despite concerns the country is lagging behind.

Sarah Breeden, Deputy Governor at the Bank of England, made this clear at a London conference on Wednesday, Bloomberg reported.

The BOE plans to release its proposed stablecoin framework on Monday, November 10. Early reports suggest the rules will cap individual holdings at £20,000 ($26,087) and business holdings at £10 million.

🏦 @bankofengland unveils Stablecoin Regulation Roadmap🧵

Bloomberg reports that BoE Deputy Governor Sarah Breeden stated the UK will keep pace with the U.S. in rolling out stablecoin regulations.
The framework includes temporary holding limits of £20,000 per individual and £10… pic.twitter.com/1rkt82me7Y

— kimcĦi.ℏ/acc (@HederaKimchi) November 5, 2025

These limits aren’t permanent—they’re meant to protect the banking system while regulators figure out how digital currencies affect traditional lending.

Why the UK Is Taking a Different Approach with Stablecoin Regulation

Breeden explained that Britain needs stricter caps than America because of how mortgages work.

In the US, government-backed agencies Fannie Mae and Freddie Mac handle most home loans, funding them through financial markets. British homebuyers, however, get mortgages directly from commercial banks.

If too much money moves into stablecoins, UK banks could lose deposits they need for mortgage lending. That’s why regulators want temporary guardrails. Once they’re confident stablecoins won’t drain bank funding, the caps will come off.

The Trump administration’s Genius Act sparked excitement earlier this year by creating a framework for dollar-pegged digital assets. Some UK crypto businesses worried Britain was falling behind, but Breeden pushed back on that idea.

“Our aim is to make sure that our regime is up and running just as quickly as the US,” she said. “It’s a fabulous opportunity.”

The Takeaway?

For individual traders, the £20,000 cap might feel limiting at first. But Breeden thinks the practical impact will be small. Most people don’t hold that much in stablecoins anyway. Businesses facing the £10 million limit will have more breathing room, and exemptions are expected for certain cases.