UK Narrows Stablecoin Payment Rules, Circle Stock Rises

Circle's stock price rose by 6% on Thursday to $85.29 as Coinbase shares gained 5% to $172.68, following a broader crypto rally.

The UK government has narrowed the rules for stablecoin payments, removing a specific source of friction in the new crypto safeguarding regime.

This change will allow issuers and payments firms to temporarily hold qualifying stablecoins while carrying out payment transactions without being treated as providing a separately regulated cryptoasset-safeguarding service.

The legislation clarifies that dealings involving UK-issued qualifying stablecoins, already authorized under the broader financial-services regime, are carved out of overlapping crypto activities.