BoE's Bailey warns of 'wrestle' with Trump administration over stablecoin rules — flags UK run risk!

Bank of England Governor Andrew Bailey, speaking at a BoE conference on Friday, said he expects a direct confrontation with the Trump administration over international stablecoin standards. Bailey, who chairs the Financial Stability Board, warned that U.S.-issued stablecoins that are hard to redeem could flood into jurisdictions like the UK during a financial crisis — creating a systemic run risk that domestic regulators may struggle to contain.

The remarks land at a sensitive moment: U.S. lawmakers are preparing for a May 14 Senate Banking Committee markup of the CLARITY Act, which would establish a federal framework for stablecoins. The UK is simultaneously building out its own stablecoin regime, setting up a potential collision between two major financial centres over whose rules govern cross-border digital dollar flows.

The core tension is structural — if U.S. stablecoins operate…