The Bank of England and the Financial Conduct Authority are developing a regulatory framework to ensure the stability of stablecoins and mitigate potential financial threats

According to Cryptoslate, the Financial Policy Committee (FPC) of the Bank of England stated in its April 2025 record that while the size and relevance of stablecoins continue to grow, inadequate regulation and inadequate asset support may pose new risks to financial stability in the UK, especially during times of stress. The committee reiterates that the Bank of England and the Financial Conduct Authority (FCA) are actively developing regulatory frameworks for both systemic and non systemic stablecoins to ensure that these tokens can reliably meet redemption requests and maintain parity even under volatile market conditions.