Consultation engagement session: Bank of England and Financial Conduct Authority’s approach to joint regulation of systemic stablecoin issuers

The Bank of England and the Financial Conduct Authority (FCA) have published a joint framework outlining how they will regulate systemic stablecoin issuers in the UK. The proposals establish a coordinated two-tier regulatory regime, with the FCA overseeing all UK-issued qualifying stablecoins, while issuers deemed systemic by HM Treasury will be jointly regulated by the Bank and the FCA.

The framework sets out:

• How supervisory responsibilities will be shared between the Bank of England and the FCA.
• How firms will transition from FCA-only oversight to joint regulation if they become systemic.
• How regulatory requirements will differ for systemic stablecoin issuers to address greater financial stability risks.
• Provisions for firms expected to be systemic from launch.
• How the stablecoin regime will interact with other UK regulators where responsibilities overlap.

The proposals aim to provide greater regulatory clarity while supporting innovation, consumer protection, market integrity and financial stability as the UK’s stablecoin market develops.

This consultation paper seeks to gather feedback on the Bank’s proposed application of rules for systemic stablecoin issuers during transition when recognised as systemic by HMT. This builds on the rules the Bank is consulting on in the Bank’s June 2026 Publication and the final rules published by the FCA on its PS26/10.

This consultation closes on 30 September 2026.

This 60-minute online session for members of The Payments Association will provide a collaborative space to share views, test ideas, and contribute directly to the drafting of our formal response to the consultation.