Bank of England Chief Flags ‘Coming Wrestle With US on Stablecoin Oversight
In briefBank of England Governor Andrew Bailey warned that U.S. dollar tokens could flood Britain in a crisis.The GENIUS Act lets issuers redeem through exchanges, while the UK regime requires direct 1:1 redemption.The divide will be settled by markets and national rules, not global coordination, Decrypt was told. Bank of England Governor Andrew Bailey has warned of a “coming wrestle” with the U.S. over standards, claiming Friday that dollar tokens lacking direct redemption could flood Britain during a crisis. “If we want stablecoins to be part of the architecture of payments globally […] theyre only going to work if we have international standards,” Bailey said at a BoE conference on financial imbalances, as quoted by Reuters. “Frankly, that, I think, is going to be a coming wrestle with the [U.S.] administration.” “We know what would happen if there was a run on a stablecoin—theyd all turn up here,” Bailey added. Bailey, who also chairs the Financial Stability Board (FSB), has long warned that dollar-pegged tokens could erode monetary sovereignty, pushing UK banks toward tokenized deposits over stablecoin issuance. The remarks land alongside a pushback against stablecoins from European Central Bank President Christine Lagarde, who argued even euro-denominated tokens would threaten financial stability and monetary policy









