PAYMENTS
Teresa Cameron, Group CEO of Clear Junction, says the consultation confirms a direction that regulated institutions have been preparing for.“ A clear regime for backing assets, holding limits and prudential oversight is essential if stablecoins are to play a meaningful role in UK payments and settlement,” Teresa says.
Joint regulatory approach Non-systemic stablecoin issuers will be regulated by the FCA. If HM Treasury recognises them as systemic, they will transition to the Bank’ s regime under joint regulation, with the Bank overseeing prudential and financial stability risks while the FCA continues supervising conduct and consumer protection. The Bank and FCA will publish a joint approach document in 2026 clarifying how rules will apply in practice and supporting the transition between regimes.
The consultation remains open until 10 February 2026. Following consultation, the Bank will consider feedback before consulting on and finalising Codes of Practice later in 2026, which will establish detailed requirements for systemic stablecoins.
“ These proposals are fit for a future where stablecoins play a meaningful role in payments, giving the industry the clarity it needs to plan with confidence,” Sarah says.
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