🚨 Stablecoin Chaos: Bank of England Says “Don’t Touch My Rules!” 🚨

by

Why the Bank of England is channeling its inner Mrs. Doubtfire and saying, “Help is on the way… but not for stablecoin shenanigans!” 😂

 

The Bank of England is gearing up to slap some sense into the stablecoin world, because apparently, digital money needs a babysitter too! 🍼 They’re rolling out rules stricter than a Victorian nanny, all to keep the UK’s financial system from turning into a crypto circus. 🎪

Deputy Governor Sarah Breeden, the financial world’s version of a drill sergeant, warned that loosening stablecoin rules would be like giving a toddler a chainsaw. 🪚 She’s worried folks might yank their cash from banks faster than you can say “crypto crash,” leaving lenders in a tighter spot than a sardine in a tin. 🐟

Breeden’s Battle Cry: “Caps On, Chaos Off!”

The Bank’s new rules include a £10,000 cap for individuals and £10 million for corporations. Crypto bros are whining like they’ve lost their Lambos, but Breeden’s standing firm. She says it’ll cut bank pressure in half during a crisis, which is more than we can say for your crypto portfolio. 📉

Critics? More like cry-tics. They’re sobbing that these limits will slow adoption, but Breeden’s like, “Better safe than Soros-level sorry.” 🤷‍♀️

The Bank of England softens on digital money? More like hardens faster than a stale baguette. 🥖

The risks? Oh, just the entire banking system collapsing. No biggie. 🤪

– Liz Webster (@LizWebsterSBF)

Stablecoins are now a $312 billion global party, and governments are crashing it with rulebooks in hand. The US passed the GENIUS Act (because nothing says “genius” like regulating crypto), and the UK’s like, “Hold my tea, we’re not falling behind.” 🍵

UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent had a cozy chat about keeping innovation alive without turning the financial system into a dumpster fire. 🔥

Bank of England: “Back It Up, Buttercup!”

Under the new rules, stablecoin issuers have to park 40% of their reserves with the Bank of England. No interest? No problem! It’s like a financial time-out. 🪑 The other 60% can chill in UK government securities, because nothing says “stable” like Her Majesty’s bonds. 👑

That £20k stablecoin limit? It’s not a blanket cap, it’s a financial snuggie. Wrap yourself in it and stay warm. 🧣

– Geoff Richards (@GeoffTRichards)

Remember when Circle’s USDC lost its dollar peg? Yeah, the Bank of England does too. They’re making sure that never happens again, because who needs a repeat of Silicon Valley Bank’s meltdown? 🏦

Governor Andrew Bailey promises these rules will let stablecoin issuers thrive while keeping public trust intact. Because nothing says “trust” like a good old-fashioned regulatory framework. 📜

Regulators: The Ultimate Tag Team

The Bank of England and the Financial Conduct Authority are teaming up like Batman and Robin, but for finance. 🦇 The Bank will watch over stablecoins used for daily payments, while the FCA keeps an eye on crypto trading shenanigans. HM Treasury gets to decide who’s “systemic” and who’s just a financial flea. 🪰

Non-systemic stablecoins? They’re staying under the FCA’s wing, probably trading memes and NFTs. 🖼️

Wholesale settlements? Not yet, but the Bank’s Digital Securities Sandbox is ready to test the waters. Let’s hope it doesn’t turn into a financial slip ’n slide. 🛝

Read More

2025-11-12 17:42