The Bank of England and the Financial Conduct Authority published their joint approach document in June 2026, setting out how the two regulators will divide responsibility for supervising UK stablecoin issuers. The document accompanies the Bank's sterling-denominated systemic stablecoin Policy Statement and the FCA's stablecoin issuance Policy Statement PS26/10. Both were published in June 2026. The joint approach is a final document, not a consultation paper.
The two-regulator structure rests on the Financial Services and Markets Act 2000 and its 2023 amending Act. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 extend that statutory base to cover stablecoin issuance. The FCA authorises all qualifying stablecoin issuers under PS26/10 and sets consumer protection, conduct, and market integrity requirements. Designation as systemic triggers Bank of England prudential supervision. The Bank then sets capital and liquidity requirements, reserve composition rules, and operational resilience standards for that issuer. The joint document specifies coordination duties, information-sharing protocols, and supervisory handover procedures when an issuer crosses the systemic threshold.
Any stablecoin issuer operating from a UK establishment must apply for FCA authorisation under PS26/10, regardless of scale. Issuers reaching the systemic threshold will face Bank of England prudential requirements on top of FCA conduct obligations. Banks and payment institutions planning sterling-pegged stablecoin products should review both regulators' requirements before applying for authorisation.
The systemic designation threshold has not yet been set by statute. HM Treasury will fix the trigger by secondary legislation under the Financial Services and Markets Act 2023. Until that threshold is confirmed, issuers cannot determine in advance whether they will face Bank of England oversight alongside FCA supervision. The Bank's consultation on its draft Code of Practice for systemic stablecoin issuers remains open as of this post.
Licentium may advise stablecoin issuers and payment institutions on UK authorisation strategy and cross-regulator compliance planning. Work we undertake includes stablecoin regulatory authorisation, FCA PS26/10 compliance structuring, systemic designation analysis, Bank of England prudential requirements, reserve asset structuring, and FSMA perimeter advice.