BTC, ETH, XRP Rally Slows, BoE Flags US Stablecoin Risks
Bitcoin (BTC), Ethereum (ETH), and XRP momentum slowed in the early trading hours on Monday, amid the latest Bank of England (BoE) warning and amid the US targeting stablecoin regulation.
BTC is hovering around $81k, ETH trades at $2,329, and XRP price has hit $1.45 resistance over the last few hours. The overall cryptocurrency market cap is up by 0.33% on the day to $2.7 trillion.
A slew of crypto market analysts said the BoE is effectively warning that the world is heading into negotiations over who sets the rules for dollar stablecoins and under what safeguards.
The UK is positioning for bank like protection of convertibility, while the US is leaning toward enabling stablecoins as a tool of dollar dominance with guardrails, according to a CoinMarketCap brief.
Andrew Bailey, the Bank of England governor and chair of the Financial Stability Board, told a recent conference that global stablecoin rules will require a “coming wrestle” with the US administration because most stablecoins are dollar-based and US influenced.
Reports quote him as saying stablecoins can only be part of global payment infrastructure if there are common international standards, which he expects will be hard to achieve given Washington’s current stance on crypto and stablecoins.
Bailey sees stablecoins as a financial stability risk, especially those that cannot be easily redeemed for cash without going via crypto exchanges during stress.
He also warned that, in a run, hard-to-redeem dollar stablecoins could migrate to jurisdictions like the UK with stronger conversion rules, saying that in a panic, “they would all turn up here.”
BoE has already outlined a relatively strict regime for pound-backed stablecoins, including temporary holding limits of about £20,000 for individuals and £10 million for corporates, plus a requirement that issuers keep 40% of reserves as non-interest-bearing deposits at the central bank and the rest in short-term UK government debt.
These proposals are designed to make redemptions robust in a crisis and to keep stablecoins firmly inside the regulated perimeter.
By contrast, the US has passed the GENIUS Act and is advancing the broader U.S CLARITY Act, which aims to enable payment stablecoins while setting federal standards.
A recent compromise would restrict passive interest on idle balances but still allow rewards tied to active use, a structure that banks argue could still compete with deposits. Libya Oil Firm Takes Full Control of Country’s Largest Refinery
