Bank of England Governor Andrew Bailey has warned that crafting meaningful international standards for stablecoins will require a direct confrontation with the Trump administration, which has taken a markedly more permissive approach to digital assets than most other major economies.
Speaking at a conference last Friday, Bailey made clear that global stablecoin regulation cannot function without coordinated international standards, but acknowledged that reaching those standards with the current US government will not be straightforward.
“If we want stablecoins to be part of the architecture of payments globally, they’re only going to work if we have international standards,” he said, adding that achieving those standards would involve what he described as a “coming wrestle” with the US administration.
Bailey also chairs the Financial Stability Board, an international body for regulatory coordination, giving his comments institutional weight beyond his role at the Bank of England alone.
Bailey’s comments arrive at a moment when the US Congress is already wrestling with these questions domestically. The CLARITY Act, a broad digital asset market structure bill scheduled for a Senate Banking Committee markup on May 14, includes provisions on stablecoin yield that have become a flashpoint between the crypto industry, the banking lobby, and regulators.
US banking groups have pushed for the bill to ban third-party platforms from offering yield on stablecoins, citing concerns about deposit flight. The latest version of the bill prohibits rewards on idle balances while allowing “other forms of customer rewards”, a compromise that has satisfied neither side fully.
As the US finalizes its domestic stablecoin framework and the rest of the world watches closely, Bailey’s warning signals that the international dimension of this debate is only just beginning.
Whether the US is willing to coordinate or whether it pursues a unilateral standard that others are left to adapt to may be one of the defining regulatory questions of the coming years in crypto.
Source: X.com
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