Bank Of England

Bank of England Deputy Governor Sarah Breeden warned that easing the UK’s proposed stablecoin regulations could hurt financial stability, citing the Silicon Valley Bank collapse and Circle’s USDC briefly losing its dollar peg as cautionary examples. Her remarks highlight regulatory risk for the broader crypto market and DeFi ecosystem.

Coinbase and the UK crypto industry oppose Bank of England's proposed stablecoin caps, arguing they are stricter than US and EU regulations. The Bank of England aims to protect traditional banks but sees these caps as possibly transitional. This situation highlights the UK's challenge in balancing crypto innovation with financial stability.