Bank of England Governor Andrew Bailey has cautioned that global regulatory conflicts may arise over stablecoin oversight, particularly with the United States. Speaking at a financial conference, Bailey highlighted the risks posed by weak stablecoin redemption systems, which could exacerbate financial stress during market disruptions. He emphasized the need for shared international standards for stablecoins used in cross-border payments, as the growing issuance of dollar-backed stablecoins could threaten financial stability. The Bank of England has proposed stricter reserve and holding limits for pound-backed stablecoins, including a temporary £20,000 cap on individual holdings and a £10 million cap for corporate balances. Issuers would be required to maintain 40% of reserves in non-interest-bearing central bank deposits. Meanwhile, the U.S. is advancing stablecoin legislation through the GENIUS Act, with ongoing debates over customer rewards and yield on idle balances. The Senate Banking Committee is set to discuss the bill further this Thursday.