According to Reuters, on Friday, Bank of England Governor Andrew Bailey warned that international regulators face a “coming wrestle” with the U.S. government over stablecoin standards. Bailey, who chairs the Financial Stability Board, highlighted a key vulnerability: some U.S. dollar-pegged stablecoins cannot be readily converted to dollars without routing through crypto exchanges, potentially limiting convertibility during a crisis. “If there was a run on a stablecoin, they’d all turn up here,” Bailey said.
The UK’s planned stablecoin framework diverges sharply from the U.S. GENIUS Act. The BoE proposes holding limits of £20,000 for individuals and £10 million for businesses, requiring systemic issuers to hold at least 40% of reserves in unremunerated accounts at the Bank of England. By contrast, the GENIUS Act mandates 100% reserve backing but does not require direct redemption capability from issuers without intermediaries.
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