The UK’s approach to stablecoins will mirror those established in the United States, seeking to balance market innovation with financial stability. The Bank of England (BoE) aims to release a regulatory framework by November 10, 2025, closely resembling the U.S.’s stablecoin regime. This decision follows discussions between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent highlighting the need for international cooperation in the cryptocurrency space. The BoE will implement temporary limits on stablecoin holdings, reflecting a cautious approach to market dynamics. These limitations are being introduced due to concerns about rapid withdrawals from bank deposits potentially impacting lending availability for individuals and businesses, particularly considering the UK’s reliance on commercial bank loans.