BoE’s Bailey warns of looming ‘wrestle’ with US over stablecoin rules, flags run risk for UK
The Block
Bank of England Governor Andrew Bailey warns of potential conflicts with U.S. stablecoin regulations and highlights financial stability risks for the UK.Summary
Bank of England Governor Andrew Bailey has warned of a forthcoming regulatory clash with the U.S. regarding global stablecoin standards. Bailey, who chairs the Financial Stability Board, expressed concerns that U.S. stablecoin models lack direct redemption guarantees, which could trigger financial instability and currency runs in other jurisdictions like the UK during a crisis. This tension highlights a policy rift between the UK’s approach—which emphasizes strict reserve requirements and Bank of England-held reserves—and the U.S. GENIUS Act framework. Alongside European Central Bank President Christine Lagarde, Bailey is pushing for more robust international standards to mitigate the systemic risks posed by stablecoins.
(Source：The Block)