Overview
- Andrew Bailey, who spoke Friday at a Bank of England conference, said global watchdogs face a “wrestle” with the U.S. over stablecoin standards.
- He said some dollar-pegged tokens cannot be converted into cash without using crypto exchanges, which could break down during market stress.
- He warned a run on hard-to-redeem coins could push holders toward the UK, which plans strong legal rights to convert stablecoins into money.
- In the U.S., the Senate Banking Committee set a Thursday markup for its stablecoin bill, and the latest draft bans rewards on idle balances as the administration backs the GENIUS Act.
- The Bank of England has proposed holding caps and sizable deposits at the central bank that pay no interest to support redemptions in a $317 billion market led by dollar-backed coins.