What the UK stablecoin regime is
The UK is building stablecoin rules on two legal bases. The first is the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102, made February 4, 2026), which bring cryptoasset activities, including issuing qualifying stablecoins in the UK, inside the FCA's authorisation regime (legislation.gov.uk; FCA). The second is the Banking Act 2009 payment-systems regime, under which HM Treasury can recognise a stablecoin issuer as systemic and bring it under the Bank of England (FCA PS26/10, Chapter 2).
In practice that means most issuers start with the FCA. The FCA's policy statement PS26/10, Stablecoin issuance (June 2026), sets final rules for non-systemic UK-issued qualifying stablecoins on issuance, backing assets, redemption, safeguarding and disclosures. If a coin becomes systemic, the Bank's rules apply as well, and the issuer moves from FCA-only to joint regulation.
Who it applies to
- UK issuers of qualifying stablecoins: need FCA authorisation under the new regime and must follow PS26/10.
- Systemic stablecoin issuers: recognised by HM Treasury, then jointly regulated by the FCA and the Bank of England.
- Firms offering services in stablecoins (trading, custody and others): covered by other parts of the FCA cryptoasset regime; see FCA crypto regime.
- Not covered here: the digital pound, which is a separate Bank of England and HM Treasury project (CBDC tracker).
Key requirements
| Requirement | Source | Plain-language meaning |
|---|---|---|
| Issuance guardrail (systemic) | BoE draft, 2026-06-22 | Temporary cap on issuance per systemic stablecoin, initially £40bn, instead of per-person holding limits. |
| Backing assets (systemic) | BoE draft, 2026-06-22 | Up to 70% in short-term UK government debt (was 60% in consultation); rest in central bank deposits. |
| Statutory trust | FCA PS26/10 | Backing assets held on statutory trust for holders. |
| Backing pool buffer | FCA PS26/10 | A 5% excess is allowed in the backing asset pool. |
| Redemption | FCA PS26/10 | Redemption timelines; KYC must be completed before the redemption period starts; rules clarified for secondary-market holders. |
| Disclosures | FCA PS26/10 | Holders can access historical disclosures; prospective holders told about withdrawal rights. |
| Custody | FCA PS26/10 | Limited intragroup custody permitted, subject to safeguards. |
Figures (£40bn, 70%, 5%) are as stated by the Bank of England on June 22, 2026 and the FCA in PS26/10 (June 2026). The Bank's figures are draft until its Code of Practice is final.
What's changing
The Bank of England asked for feedback by September 22, 2026 and intends to finalise its Code of Practice by the end of 2026, with further materials alongside joint work with the FCA (BoE). The FCA's application period for authorisation opened September 30, 2026 and closes February 28, 2027 (details). We log each step on the regulation tracker.
UK vs US vs EU
| Point | UK | US GENIUS Act | EU MiCA |
|---|---|---|---|
| Status (2026-10-21) | FCA rules final, regime expected 2027-10-25; BoE draft | Law; effective expected 2027-01-18 | EMT rules apply since 2024-06-30 |
| Large-coin oversight | Systemic: BoE plus FCA | Federal regulators; state option up to $10bn | Significant EMTs: EBA |
| Size limits | £40bn issuance guardrail per systemic coin (draft) | None in statute | Extra duties when significant |
What it means for builders
- UK issuers should plan for FCA authorisation in the application period ending February 28, 2027.
- Model backing-asset income using the Bank's draft 70% cap only if you expect to be systemic, and watch for the final Code of Practice.
- Payment firms planning sterling stablecoin settlement should expect regulated coins from 2027, not before.
- Cross-border teams can compare with the GENIUS Act and MiCA.
- Not legal advice; confirm details in the FCA and Bank documents.