On June 1, the FCA proposed regulations on stablecoins to boost consumer protection and market stability. This initiative outlines reserves in liquid assets and ensures full redemption, with consultations ending on July 31, 2025.
Reactions from the industry are mixed. Ripple’s Matthew Osborne calls it crucial for the UK’s digital asset positioning, while analyst Lorien Carter acknowledges its positive impact on consumer protection but warns of technology adaptability challenges.
The UK’s move mirrors the EU’s MiCA regulations, indicating a global trend toward tighter stablecoin oversight. The FCA aims to balance innovation and consumer safety, reflecting on the need for enhanced trust in digital finance.
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