BoE Pursues Payments Innovation Amid Stablecoin Regulation Push
The Bank of England has received new objectives from the UK government to prioritize technological innovation in payments and digital finance. The BoE will now work to ensure that UK payment regulation keeps pace with technological advancements, creating conditions for innovation and driving progress in areas like tokenization and blockchain technology.
In the US, efforts continue to implement the GENIUS Act, a law signed by President Trump last year aimed at regulating stablecoins. The Treasury Department has announced proposed rulemaking efforts under the Act, seeking public comments on definitions of 'payment stablecoin' and requirements for stablecoin issuers to hold federal- or state-issued licenses.
Crypto industry stakeholders have expressed concerns that the proposed GENIUS rules may stifle innovation in the sector. The Blockchain Association has called for Treasury and its appendages to clarify definitions of key terms to ensure that issuers' anti-money laundering obligations don't extend to downstream peer-to-peer transactions. The association warned that failure to follow their advice could 'cripple' the crypto sector.