9/19/2025
Crypto Week: Regulation, Stablecoins, and Geopolitical Clashes
Coingarage Exchange
Crypto Week: Regulation, Stablecoins, and Geopolitical Clashes
A lot has happened in the crypto world over the past week that could significantly affect the future of digital assets. Here are the most important events and their possible impact.
Bank of England Proposes Limits on Stablecoin Holdings
The Bank of England is preparing regulations that would allow individuals to hold a maximum of £10,000-£20,000 in so-called systemic stablecoins – those that are used for regular payments or have the potential to be widely used in the UK. For companies, the limit would be up to £10 million.
Crypto communities and companies are criticizing the proposal – they say it is too strict an intervention that could limit innovation and put the UK at a regulatory disadvantage compared to the US or the EU.
France threatens to block EU passporting under MiCA
With the arrival of the new MiCA (Markets in Crypto-Assets) regulation, which is intended to unify the rules for crypto firms in the EU, tensions are emerging between member states. France, along with Italy and Austria, point out that some licenses are granted in countries with less control or weaker rules - which allows firms to "choose" favorable jurisdictions. Regulators want a greater share of oversight for ESMA (European Securities and Markets Authority) if licenses are to be recognized across the EU.
Bahrain introduces new law regulating Bitcoin and stablecoins
In the Persian Gulf, Bahrain is trying to become a center for safe crypto innovation and activity - new legislation is supposed to bring clear rules for Bitcoin, stablecoins and wider digital assets. The aim is to ensure transparency, reduce the risks associated with financial crime and attract companies and startups that need a stable regulatory framework.
UK, US move towards closer cooperation on crypto regulation
The UK and US are set to announce a partnership that would bring their regulatory frameworks for digital assets – particularly stablecoins/apps – closer together and allow UK crypto companies better access to the US market. The topic has come up in talks between the Treasury and representatives of companies such as Coinbase, Ripple, and Circle.
New US approach – SEC moves towards less repression, more regulatory clarity
Under Paul Atkins, the SEC is starting to move away from the very strict punitive line towards crypto companies that was promoted by the previous chairman. The new approach is one that prefers to focus on real fraud or significant risks, rather than minor or technical violations. There is also an emphasis on defining tokens that are not securities and on making the regulatory environment more predictable for companies.
Why this all matters
Regulation is becoming a global game, not just in the US or the EU. Countries like Bahrain are showing that even smaller states can play an important role if they offer clear rules and stability for business.
Stablecoins are in the spotlight – regulators are looking at how they can affect the banking system, liquidity and financial stability. Ownership limits or greater oversight of who issues them could be models that will emerge in other jurisdictions.
Cross-border cooperation – when the UK and the US talk about harmonizing rules, it signals that cryptocurrencies can no longer be regulated in isolation. A breakdown or conflict between the rules of different countries could be a major risk for companies operating globally.
Shift in American approach – if the SEC truly prioritizes clarity over aggressive sanctions, it could mean less legal risk for projects, but on the other hand there will be more pressure on transparency, accountability and compliance.
We informed you on the Coingarage exchange blog this week ( links to articles )
https://coingarage.io/en/blog/could-bitcoin-and-ether-see-huge-growth-in-the-next-three-months
*This is not an investment recommendation.
The Coingarage team
