Bank of England publishes policy statement and draft Code

Cresthaven Analytics Intelligence Brief

Headline

Bank of England publishes policy statement and draft Code of Practice for systemic stablecoin issuers

Executive Summary

The Bank of England published a policy statement and draft Code of Practice on June 22, 2026, setting out binding rules for systemic stablecoin issuers. This is the first substantive rulebook for systemic stablecoins under the Bank's direct supervisory remit.

Bottom Line

The Bank of England's draft Code of Practice establishes the first concrete rulebook for systemic stablecoin issuers in the UK, translating the Financial Services and Markets Act 2023 supervisory powers into proposed binding obligations. Firms operating stablecoin arrangements at systemic scale now face a defined compliance baseline against which their current practices must be assessed. The bifurcated structure, with the Bank governing systemic issuers and the FCA governing non-systemic issuers, places firms near the designation threshold inside two concurrent supervisory frameworks.

Key Regulatory Signals

A Rulebook Now Exists for Systemic Stablecoin Issuers: The draft Code of Practice constitutes the Bank of England's proposed binding rules for firms designated as systemic stablecoin issuers. Any issuer operating at systemic scale in the UK must assess its current practices against this draft text before the consultation closes.
Designation Threshold Carries Immediate Screening Obligation: Firms issuing sterling-backed or widely-used stablecoins must determine whether their operational profile meets the systemic designation criteria set out in the policy statement. Firms that fall within scope face a materially different supervisory relationship with the Bank of England than those regulated solely by the FCA.
Dual-Regulator Architecture Becomes Operational: The Bank of England's framework sits alongside the FCA's stablecoin regime for non-systemic issuers, creating a bifurcated supervisory structure. Firms near the systemic threshold must map their obligations across both regimes simultaneously to avoid compliance gaps.
Code of Practice Is in Draft: Comment Window Is the Shaping Opportunity: The rules are not yet final. The consultation period represents the primary opportunity for issuers, payment system operators, and their legal counsel to influence the final text before it becomes binding.
Alignment with HM Treasury's Digital Securities and Payments Trajectory: The release follows HM Treasury's broader digital assets legislative programme and the Financial Services and Markets Act 2023 powers enabling systemic stablecoin oversight. The Bank's action operationalises statutory authority that has been in place since 2023.

Regulatory Delta

- No prior Bank of England rulebook for systemic stablecoin issuers existed. This draft Code of Practice is a structural first under the Financial Services and Markets Act 2023 framework.

- The policy statement moves the Bank's supervisory posture from principles-based discussion papers into concrete draft rules — a material escalation from the 2021 and 2023 discussion papers.

- HM Treasury's digital assets legislative programme and the FCA's parallel stablecoin authorisation regime together form a coordinated dual-track structure. This release activates that structure at the systemic tier.

Materiality Classification

HIGH — A draft Code of Practice from the Bank of England under statutory powers constitutes the first binding-rules-stage instrument for systemic stablecoin issuers, requiring sector-wide compliance assessment by all firms operating stablecoin arrangements at or near systemic scale in the UK.

Intelligence Outlook

Monitor the Bank of England for the consultation close date, response statement, and final Code of Practice publication under this rulemaking.