A new report indicates that the Bank of England may reconsider its proposed regulatory framework for stablecoins tied to the British pound.
Deputy Governor Sarah Breeden reportedly expressed disappointment over what she described as limited constructive engagement regarding the bank’s proposals to regulate pound backed stablecoins. She emphasized that the central bank is genuinely willing to review and adjust the rules if necessary.
The proposed framework was designed to ensure that sterling denominated stablecoins remain secure and can always be redeemed at their full value. Under the plan, issuers whose stablecoins are classified as systemically important by the UK Treasury would be required to operate under strict supervision from the Bank of England. In addition, issuers would need to fully back their tokens with high quality assets.
Among the main provisions in the proposal are requirements for systemic issuers to keep at least 40 percent of their reserves as deposits with the Bank of England and up to 60 percent in short term UK government debt. Stablecoins must also remain redeemable at their full value, and issuers are expected to maintain highly resilient business models.
Meanwhile, stablecoins that are primarily used for trading purposes would continue to fall under the regulatory oversight of the Financial Conduct Authority.#crypto #cryptonews https://t.me/coinsignalpublic https://coinsignals.net
