BoE Governor Andrew Bailey Flags US Stablecoin Rules as Global Flashpoint

On May 10, 2026, Bank of England Governor Andrew Bailey said regulators are moving toward a confrontation with the United States over stablecoin standards and warned fragmented rules could threaten financial stability. He argued some US-issued tokens may not offer smooth dollar convertibility without exchanges or intermediaries, which could become a weakness during market stress. Bailey also contrasted UK and US approaches, noting UK draft proposals for systemic issuers include a 40% reserve requirement at the Bank of England.