Bank of England Publishes Draft Rules for Systemic Stablecoin Regulation

The Bank of England has released its policy statement and a draft Code of Practice for systemic stablecoin issuers, establishing a new regulatory framework for these digital assets in the UK. The framework includes revised asset holding requirements, increasing the share of interest-bearing assets to 70%, and introduces a temporary issuance limit of £40 billion per stablecoin. This initiative aims to foster secure innovation and enable regulated stablecoins to function as reliable digital money within the UK, with final rules expected by late 2026 for a 2027 implementation.