Stablecoins Grow as US Adviser and BoE Signal Rule Changes, Potential Shift Toward Regulated Banks

A White House adviser said that GENIUS‑compliant stablecoins could boost US banks, arguing compliance with proposed standards would channel stablecoin activity into regulated banking channels rather than the unregulated sector ^[1].

In the UK, the Bank of England signaled it is prepared to revise its proposed sterling stablecoin framework after industry pushback; Deputy Governor Sarah Breeden told the House of Lords committee the central bank is openly reconsidering individual holding limits (the proposed £20,000 cap), reserve requirements and its approach to managing deposit‑flight risk ^{[2] [3]}.

Observers note stablecoin supply continues to expand across crypto markets while regulators have maintained that stablecoins will not receive bank‑style deposit insurance, and some governments may see stablecoins as instruments of broader currency influence — points that are informing ongoing regulatory debates ^[4].

Regulators and policymakers in both the US and UK are actively reassessing stablecoin policy amid industry pressure and growing market use; officials and advisers are framing revisions around financial‑stability risks, reserve standards and the potential for regulated channels to absorb stablecoin activity ^{[1] [2] [4]}.