The UK must be “very careful” how closely its future stablecoin framework aligns with the US GENIUS Act, a leading economic expert has warned, with a framework that hews too closely to the US regulations leaving the UK open to contagion risks.
Creon Butler, who leads the global economy and finance programme at Chatham House, told The Banker that the light touch approach taken by the GENIUS Act (see Regulation Tracker), which regulates stablecoins, may not be robust enough and could pose “unacceptable risks” to the UK’s financial system.