The UK recently passed the Financial Services and Markets Act 2023, which gave the Bank of England (BoE) the power to create a systemic stablecoin regime. BoE has said it plans to publish its rules for systemic stablecoins this year. The government could distribute power between the BoE and the Financial Conduct Authority (FCA), in favor of the former. This follows from a 40-page report on the consultation process released by His Majesty’s Treasury on 7 August.
The final document outlines some measures to regulate so-called “systemically important stablecoins”. The main takeaway is the intention of the government to secure joint control of stablecoins as a joint venture between the BoE and the FCA.
The Bank of England will have the power to prohibit the FCA from taking action against a stablecoin provider, and the Prudential Regulatory Authority (PRA) will also have the power to prevent the FCA from taking certain actions “if it raises financial stability concerns.”
Image: 3DNews
