Bank of England Plans to Release Stablecoin Draft Rules Next Month, Finalize by Year-End

According to Bank of England Deputy Governor Sarah Breeden, the central bank plans to publish draft rules for systemic stablecoins next month and finalize the framework by year-end, as announced on May 20 during London's City Week 2026 event.

The Bank of England may introduce temporary caps on stablecoin issuance during the early rollout phase to mitigate systemic risks while the market matures. Officials emphasized that tokenization could improve efficiency across the financial system and that regulators now view digital assets as infrastructure tools rather than speculative instruments.