UK seeks to regulate stablecoins after UST crash
The UK government has reportedly proposed additional safety measures to be implemented to prevent major damage to future financial stability from stablecoin collapses.
In particular, the government wants to provide more power to the Bank of England so that it can oversee the administration of failed stablecoin projects.
The ministry has proposed to modify the "Financial Market Infrastructure Special Administration Regime." FMI SAR would become the major default framework for handling failed stablecoin projects. Thus, should a collapse of a stablecoin be evaluated to threaten financial stability, the project that minted it will access special insolvency arrangements. Besides, the amended legislation would ensure that the failed project would make the interests of the suffering investors its priority.
