On 30 June 2026, the Bank of England and the FCA published their joint paper on the approach to regulating systemic stablecoin issuers. The paper reflects a final supervisory position, not a consultation draft. It sets out each authority's responsibilities once HM Treasury makes a systemic designation and explains how the two regulators will co-ordinate oversight of the same issuer.
The Bank of England exercises oversight under the Banking Act 2009 (as amended by FSMA 2023) to address prudential soundness and financial stability risks. The FCA holds its FSMA 2000 jurisdiction over conduct, consumer protection, and anti-money laundering. Where responsibilities overlap, the authorities co-ordinate through the Payments Memorandum of Understanding, align policy where possible, and escalate unresolved conflicts through each authority's own decision-making chain. Neither authority cedes its statutory powers to the other.
Non-systemic stablecoin issuers regulated solely under FCA PS26/10 will, on systemic designation, acquire a second regulator in the Bank of England while the FCA continues to supervise their conduct. Issuers must prepare for dual supervisory engagement: separate reporting lines, documentation compatible with both regimes, and readiness for Bank of England prudential examinations. Payment service providers, custodians, and exchanges processing systemic stablecoin flows should also assess where BoE prudential requirements interact with their existing FCA obligations.
The joint paper does not specify when HM Treasury will make a first systemic designation, leaving market participants uncertain about when the dual-regulator regime will activate. Foreign-issued stablecoins widely used in UK payments fall outside the systemic designation mechanism under current legislation, and their regulatory treatment under the UK regime remains unresolved.
Licentium advises on regulatory structure analysis, systemic designation preparedness, and cross-authority compliance mapping for stablecoin issuers and digital payment platforms. We may advise on this matter and have a partner network available. Work we undertake includes Bank of England and FCA co-ordination planning, FSMA 2023 authorisation applications, stablecoin payment system legal assessments, and supervisory engagement strategy.