meta_id 3282731

On June 30, 2026, the Bank of England and the Financial Conduct Authority (FCA) published a joint approach document setting out how they will apply the United Kingdom's stablecoin regime to systemic stablecoin issuers. The document clarifies the regulatory responsibilities and transition arrangements for stablecoin issuers recognised as systemic by HM Treasury (HMT), following amendments to the Banking Act 2009 introduced by the Financial Services and Markets Act 2023 (FSMA 2023). Under the UK stablecoin regime, the FCA regulates all UK-issued qualifying stablecoins, while the Bank of England assumes responsibility for prudential regulation and financial stability oversight once HMT recognises an issuer as systemic. The approach document outlines how supervisory responsibilities will be allocated between the authorities, how regulatory requirements interact, and the transition arrangements for issuers moving from FCA solo regulation to joint regulation. The document addresses two scenarios: issuers transitioning to systemic status after growing their operations, and new issuers recognised as systemic at launch (SaL). For transitioning issuers, the Bank of England expects a typical transition period of 12 to 36 months, during which it may use its power of direction to temporarily waive or modify requirements. The Bank will support issuers through mobilisation and scaling stages, applying proportionate supervisory oversight. For SaL issuers, the Bank proposes a step-up approach allowing firms to hold up to 95 percent of backing assets in short-term UK government debt securities initially, with the remaining 5 percent in unremunerated central bank deposits. Key requirements for systemic stablecoin issuers include direct access to payment systems, redemptions within 24 hours, specific backing asset composition, capital and reserve requirements, and a temporary issuance guardrail capping issuance at £40 billion per stablecoin. The Bank of England and FCA will coordinate closely through established governance mechanisms, including the Payments Memorandum of Understanding (MoU). The consultation closes on September 30, 2026, and responses should address ten specific questions regarding the appropriateness of onboarding approaches, transition timelines, and challenges for issuers moving into joint regulation. The authorities will publish a summary of responses and consider whether updates to existing regulatory documents are required.