The Bank of England will launch a consultation on stablecoin regulation on November 10, aiming to establish a comprehensive regulatory framework by the end of 2026. The new rules will closely align with US regulations, focusing on bonds backed by digital assets. This move aims to address the financial stability risks posed by the proliferation of digital currencies. US regulations require that the backing assets must be government debt with an issuance term of three months or less, or bonds with a remaining term of three months or less. Sources added that the Bank of England also plans to allow a wide range of assets backing stablecoins to earn interest to attract issuers. (Bloomberg)