The United Kingdom’s Financial Behavior Authority (FCA) is looking for additional opinions about its next Stablcoins regime, he said Wednesday.
“In support of the opportunities that Stablecoins present to financial services and the economy in general, the FCA will explore adding a specific approach to Stablcoins to its innovation services in the coming months,” said the FCA statement.
The rules proposed by the FCA are intended to ensure that the stable maintain their value and seek to reduce the probability that Stablecoin and Crypto custody companies
Stablecoins have been something that regulators have been observing carefully after the collapse of the Algorithmic Stablecoin Terrausd in 2022 that turned out that investors lost their life savings.
The FCA has been establishing its new cryptographic regime since 2023. In 2023, it published a discussion document with proposals for a Stablecoins regime. Since then, the regulator has increased its efforts to regulate the sector by launching a series of discussion documents for the industry and the United Kingdom government is working to establish a new legislation to ensure that regulators in the country have all the powers they need to launch their new regimes for the digital asset sector.
The FCA will work with the Bank of England to regulate Stablecoins.
“For those stablecoins who expect to operate on a systemic scale, the Bank of England will publish a complementary consultation document at the end of this year, including the response to industry feedback on allowing the return of backup assets,” said Sarah Breeden, vice governor of financial stability in the Bank of England.
