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Bank of England softens tone on stablecoins, say they should be regulated

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October 3, 2025

The Bank of England has softened its rhetoric on stablecoins, with Governor Andrew Bailey saying that stablecoins should be regulated like money, including depositor protections and access to reserve facilities, according to a report by Reuters. He previously stated that he believed stablecoins could threaten banks and the overall financial market by drawing money away from banks.

Baily now states it would be, "wrong to be against stablecoins as a matter of principle," and that the Bank of England plans to put out a paper about stablecoins.

"In doing so, we will set out that widely used UK stablecoins should have access to accounts at the BoE in order to reinforce their status as money."

He lastly added that banks and stablecoins could co-exist, with "non-banks carrying out more of the credit provision role."

Other banking organizations remain unconvinced of the usefulness of stablecoins with Rob Nichols president and the CEO American Bankers Association claiming they could "risk disintermediating core banking activity like deposit taking and lending."

Much of this current push for stablecoins comes from the GENIUS Act, which was signed into U.S. law by Trump in July. This act puts in place regulatory guidelines for stablecoins.