BoE set to gain stablecoin insolvency powers

Government proposal would amend existing rules for dealing with failed payment systems

The Bank of England at night

The Bank of England is in line to gain new powers to oversee the winding down of failed systemic stablecoins, under proposals published today (May 31) by the UK government.

The BoE would be given “powers of direction” over administrators appointed to deal with collapsed stablecoins, in an amended version of existing rules designed for financial market infrastructures (FMIs) more broadly.

Stability risks from stablecoins leapt up the regulatory agenda in May, after a major stablecoin, terraUSD

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