UK prepares to regulate stablecoins, aiming for synergies with US in 2026?

Jakarta, Pintu News – The UK government has announced plans to hold a consultation on stablecoin regulation on November 10, with a target of implementation by the end of 2026. The move comes as crypto users in the UK reach 7 million, up 204% from 2.3 million four years ago. The policy aims to align regulations with developments in the United States.

Stablecoin Consultation and Regulatory Framework in the UK

The UK government is showing it is serious about regulating the stablecoin market by planning a public consultation that will begin this November. The purpose of this consultation is to gather input from various parties regarding the regulatory structure that will be implemented.

This is in response to a similar development that occurred in the United States following the passage of the GENIUS Act. The Bank of England has been tasked with overseeing that all stablecoin issuers must hold reserves in the form of government bonds or short-term securities.

This policy is expected to increase investor and user confidence in stablecoins in the UK, by ensuring that the value of stablecoins in circulation is backed by safe and liquid assets.

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Role and Impact on Financial Institutions

With this new regulation, financial institutions that act as stablecoin reserve managers will gain new business opportunities. They will be responsible for ensuring that stablecoin reserves are held in the form of secure assets such as government bonds or short-term securities. This not only increases the security of stablecoin assets, but also opens up opportunities for cooperation with other financial institutions.

The UK’s Financial Conduct Authority (FCA) has also released a cryptoasset roadmap outlining a phased implementation approach until 2026. The roadmap includes details on how regulation will be implemented and supervised, as well as the roles that various stakeholders in the financial industry will play.

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Market Expansion and Global Competition

Circle, one of the major players in the stablecoin market, has secured licenses in France for EURC and Tether (USDT) under the European Union’s MiCA regulation, signaling their expansion in Europe. Meanwhile, Tether (USDT) still holds a dominant global market share, despite facing increased scrutiny regarding reserve transparency and auditing practices.

An increasingly regulated UK market is expected to attract more institutional players to enter. Clear and structured regulation is expected to reduce risk and increase investor confidence, thereby strengthening the UK’s position as a globally competitive crypto finance center.

Conclusion

With this progressive move, the UK is not only increasing safety and trust in the use of stablecoins, but also positioning itself as a leader in global crypto regulation. The synergy with US regulation will hopefully bring stability and continued growth to the global crypto industry.

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Reference

• BeInCrypto. UK Stablecoin Regulation Targets 2026 Implementation. Accessed on November 7, 2025
• Featured image: Generated by AI