Bank of England Governor Andrew Bailey warned that the lack of international stablecoin standards, especially for dollar-based tokens without direct redemption guarantees, could expose the UK to financial risks during crises, as such tokens may flood into Britain. Bailey stressed the need for global cooperation, highlighting a brewing dispute with the U.S. over regulatory frameworks. European Central Bank President Christine Lagarde echoed concerns, arguing that even euro-denominated stablecoins could threaten financial stability. Recent U.S. legislation, including the GENIUS Act and the upcoming CLARITY Act, has intensified debates over regulatory approaches. The Financial Stability Board (FSB) influences global regulatory consensus despite lacking formal authority. While some industry experts contend that convertibility risks are overstated given the longstanding success of offshore dollar instruments, UK officials are concerned about absorbing redemption risks externalized by the U.S. regulatory approach. The UK’s stricter 1:1 redemption rule contrasts with the U.S. framework’s seven-day window, potentially setting up policy divergence. Market access ultimately provides leverage, as the UK could restrict non-compliant stablecoins, but doing so risks limiting UK firms’ access to global payment networks.