Overview
- Andrew Bailey, speaking at a Bank of England forum on Friday, said talks with the U.S. over shared stablecoin rules will be a “coming wrestle.”
- He cautioned that some dollar stablecoins cannot be cashed out without crypto exchanges, which could fail under stress and push holders to seek redemptions in the UK.
- The Bank of England’s draft framework targets strict convertibility with temporary holding caps of £20,000 for individuals and £10 million for firms, plus a 40% reserve deposit at the central bank.
- The U.S. administration backs the GENIUS Act, and the Senate Banking Committee plans a Thursday markup of a bill that would ban rewards on idle stablecoin balances.
- Stablecoins now top $317 billion, mostly pegged to the dollar and backed by Treasuries and cash, which officials say creates financial stability risks if redemptions surge.