Bank of England Governor Bailey: Stablecoin regulation could trigger a “showdown” between U.S. and international regulators

According to Reuters, on May 8, Andrew Bailey, Governor of the Bank of England, stated at the Bank of England’s Financial Imbalances Conference that international unified standards must be established for stablecoins to become part of the global payment system—a move that would directly clash with the Trump administration. Bailey also expressed concern that certain U.S. stablecoins cannot be directly redeemed for U.S. dollars during crises and instead require intermediation through cryptocurrency exchanges, posing liquidity risks. He warned that, in the event of a stablecoin run, funds would flood jurisdictions—including the UK—that impose mandatory redemption obligations. Bailey currently serves as Chair of the Financial Stability Board (FSB) and has long maintained a cautious stance toward cryptocurrencies.