UK Finance response to the recent discussion papers on the regulatory regime for stablecoins

UK Finance has responded to both the FCA’s DP 23/4 Regulating Cryptoassets Phase 1: Stablecoins and the Bank of England’s discussion paper on the Regulatory regime for systemic payment systems using stablecoins and related service providers.

We agreed with the regulatory approach to build upon the existing regulatory and legislative regime for stablecoins to be used for retail payments in the UK. However, in our response we noted that more work needs to be done to fill the gaps in the existing regimes that arise from the novel functionality of stablecoins.