The UK government wants to give the Bank of England a secondary objective focused on innovation in digital payments, explicitly extending to payment systems that use "digital settlement assets" such as stablecoins. HM Treasury announced the proposal on Thursday, stressing that financial stability would remain the central bank's primary duty. The change would apply to the Bank's oversight of payment infrastructure and would require the Bank of England to report to Parliament annually on progress toward the new innovation objective. The government plans to implement the mandate through amendments to the Financial Services and Markets Bill. The House of Lords is scheduled to debate the bill on Sept. 7 and 9. Key points - The Bank of England would gain a secondary goal to support innovation in payment systems and digital money, while financial stability stays the top priority. - The scope would include systems using digital settlement assets, including stablecoins, tying stablecoin policy more closely to payments development. - Annual reporting to Parliament would increase visibility into how the Bank advances payments innovation and applies stablecoin-related rules. - The plan is set to be embedded via amendments to the Financial Services and Markets Bill, ahead of Lords debates on Sept. 7 and 9. - Market reaction may depend on how the annual reporting process is used alongside existing stablecoin requirements. Why the innovation mandate matters for stablecoins The proposal would broaden the Bank of England's remit beyond a purely stability-led approach by adding an innovation objective alongside its established oversight of core market infrastructure, including central counterparties (CCPs) and central securities depositories (CSDs). For stablecoins, the key detail is that the mandate is not framed as research-only or limited to central bank digital money. HM Treasury said it would cover payment systems using digital settlement assets, a definition that captures stablecoins and positions them within the UK's broader payments technology agenda. Regulatory emphasis can influence how quickly new payment rails move from pilot stages to real-world deployment, and a formal innovation objective could shape how the Bank balances experimentation with risk controls. Annual reporting could increase scrutiny Although the innovation objective would be secondary, implementation details may determine how much additional room the UK framework creates for stablecoin growth. Maksym Sakharov, co-founder and CEO of WeFi, told Cointelegraph that the requirement for annual reporting could increase public scrutiny. He said the innovation objective "overrides nothing" given its secondary status, but the Bank would still have to publish yearly accounts of its work on payments innovation and digital money. Sakharov suggested the reporting requirement could draw extra attention to stablecoin rules the central bank finalized in June. Even without altering stability obligations, publishing annual updates could make the practical application of those obligations more visible. Existing stablecoin rules and the reserve debate Sakharov highlighted requirements for "systemic stablecoin issuers," including a reserve structure that, according to his comments, requires issuers to hold at least 30% of backing assets in non-interest-bearing deposits at the central bank. He argued the "reserve split is the first thing to fix," warning it could affect whether issuing stablecoins is commercially viable. Reserve rules directly affect cost structure, risk management, and the economics of issuance, shaping which issuers can scale while meeting compliance expectations. The proposed innovation mandate would not automatically change reserve mechanics, but linking the Bank's work to a public innovation objective could add political and public pressure for regulators to explain how stablecoin market design supports payments modernization. UK stablecoin momentum: testing, interoperability, and cross-border alignment The proposal lands amid increased UK policy and operational activity on stablecoins. In August, a group participating in the Bank of England's Digital Pound Lab began testing whether a stablecoin could interoperate with a simulated digital British pound for a cross-border trade payment. Project materials said the platform did not use real customers or real money. In mid-July, the UK and US issued a joint statement on stablecoins indicating an intention to enable their use in cross-border finance and calling for closer alignment between regulatory frameworks, signaling interest in harmonizing rules as well as technical interoperability. The UK has also adjusted earlier constraints. Cointelegraph previously reported that the Bank of England dropped plans to cap individual holdings at 20,000 British pounds and business holdings at 10 million British pounds. Those limits were replaced with a temporary cap of 40 billion pounds (about $52.9 billion) on issuance for each "systemic stablecoin." The change points to an approach that targets systemic risk while allowing broader participation than earlier retail- and business-specific limits. The government's push to expand the Bank's mandate also aligns with a wider effort to encourage tokenised and distributed ledger-based innovation, echoed by City Minister Lucy Rigby, who said tokenisation and DLT could transform financial markets globally. With House of Lords debates set for Sept. 7 and 9, market participants are likely to focus not only on whether the mandate is adopted, but also on how the Bank of England translates "innovation" into measurable actions, particularly around systemic issuer requirements and reserve design that shape stablecoin economics.

California lawmakers have approved AB 2409 in both the Assembly and Senate, advancing a measure aimed at restricting "meme coin" activity tied to state public service. The bill would prohibit public officers and employees from issuing meme coins and would also bar such tokens from being listed for California residents beginning Jan. 1, 2027. AB 2409 now heads to the Governor for signature.

US authorities are investigating Singapore-based Apex Logistics for allegedly helping move Nvidia-powered AI servers into China through a multi-stop Asian transit network intended to evade American export controls. If prosecutors advance the case, it would mark the first known instance of Washington targeting a logistics provider specifically for its role in illicit semiconductor-related trade. The probe focuses on 47 shipments linked to Super Micro Computer servers equipped with Nvidia AI chips. Investigators suspect the servers were assembled using components originating in Taiwan, shipped to the United States, then diverted through multiple Asian destinations before arriving in Hong Kong and ultimately entering mainland China. Apex Logistics said it is aware of US concerns involving what it described as "a small number of shipments" that may have included goods bound for prohibited destinations. The government's emphasis on 47 shipments suggests a far larger scope than the company's characterization. Nvidia said it sells products only to "well-known partners." The investigation comes as Washington continues to tighten restrictions on exports of advanced AI chips to China, a push that began in 2022 amid concerns Beijing could use cutting-edge semiconductors to accelerate AI development and military capabilities. Days before the investigation was reported on August 26–27, 2026, judicial authorities in Taiwan indicted nine people over alleged document forgeries tied to illegal AI-server exports. Those charged included a senior Nvidia manager and Super Micro Computer employees, allegedly connected to shipments involving 130 B300 servers. Logistics firms have become a focal point because they control shipping documentation, routing, and customs declarations. When cargo is misrouted or mislabeled, regulators view the provider as either complicit or negligent. By scrutinizing Apex Logistics, US authorities appear to be widening accountability beyond manufacturers and end buyers to the shipping infrastructure that can enable large-scale diversion. For the industry, Super Micro Computer faces added scrutiny with its hardware at the center of the alleged smuggling route. Nvidia can cite partner-only sales, but repeated appearances of its top-tier chips in restricted markets are likely to raise fresh questions about the strength of partner screening and downstream controls. For China's AI sector, tighter enforcement could constrain access to leading Western chips while increasing incentives to adopt domestic alternatives, including Huawei's Ascend line.

Aug. 27 (BlockBeats) — Kansas City Fed President Jeff Schmid said current interest rates are not meaningfully restraining the U.S. economy, with inflation still running persistently above the Federal Reserve's 2% goal. "For me, I believe shortterm interest rates may be too accommodative. So, we still have work to do," Schmid said. At the Fed's July meeting, policymakers voted to hold the benchmark rate in a 3.5% to 3.75% range. Three officials dissented in favor of a rate increase. Minutes from the meeting showed several officials, including some nonvoting participants, leaned toward raising rates, while many others said policy would need to be tightened if inflation failed to ease. "Some of my colleagues opposed it at the last meeting, so I may also be in that camp," Schmid said. Schmid also pushed back on claims the Fed's credibility has been undermined. Those arguments gained traction after a poorly received July press conference by Fed Chair Walsh sparked a sharp bond-market reaction. (Jin10)

UK tax authority HM Revenue and Customs (HMRC) has released new capital gains tax (CGT) statistics showing that, in the 2024–2025 tax year, taxpayers were required for the first time to report disposals of cryptocurrency assets separately on their income tax returns. The figures indicate that 17,600 individuals declared gains from crypto disposals. Total disposal proceeds reached £13.8 billion, while realized gains came in at £1.38 billion. The dataset also highlights a pronounced gender skew. Men accounted for 87% of crypto gain reporters and generated 93% of total gains, well above the 56% male share among all CGT filers. Gains were highly concentrated. Taxpayers reporting more than £1 million in gains made up under 2% of filers but represented over half of both total disposal proceeds and realized gains. At the other end, those with gains below £25,000 comprised 65% of filers yet contributed only about 7% to 8% of total proceeds and gains. Crypto gain reporters also skew younger. Filers under 54 made up 81% of the total, with the 25–44 bracket accounting for 54%, compared with 17% for the same age group among all CGT filers. (Source: Foresight News)

Japan-based crypto asset service provider Coincheck said it completed registration as an electronic payment method provider on Aug. 27, 2026, becoming the country's second firm to obtain the license required for stablecoin-related operations. Coincheck said it will roll out stablecoin and on-chain financial services in stages, building on its existing partnership with U.S.-based Circle aimed at expanding USDC use cases in Japan. The company added that stablecoins, typically pegged to fiat currencies, are designed to maintain price stability and can support 24/7 transfers and payments with faster settlement and lower costs.

The Bank of England has been assigned a new legal duty to promote innovation in the stablecoin sector, expanding its remit alongside its role in safeguarding financial stability.

Bank of Japan Deputy Governor Ryozo Himino on Aug. 27 urged the central bank to raise interest rates in a timely manner to keep inflation from running above its 2% target, remarks that prompted markets to ramp up expectations for a move as soon as September. Overnight index swaps now price an 85–90% chance the BOJ will lift rates at its Sept. 17–18 policy meeting. The policy rate currently stands at 1%, after the BOJ raised it from 0.75% in June. Another hike in September would extend Japan's gradual exit from decades of ultra-loose monetary policy. Himino's comments come as price pressures show signs of firming. Japan's core Consumer Price Index rose 1.8% year over year in July, the fastest pace since January. The yen remains weak, increasing import costs, while energy prices have climbed amid geopolitical instability in the Middle East. Himino stopped short of explicitly backing a September hike, instead calling for "robust discussions at each policy meeting" on the appropriate pace of tightening. His emphasis on the risk of inflation overshooting marks a notable shift for a central bank that spent much of the past two decades trying to generate inflation. The BOJ kept rates negative from 2016 until early 2024, when it ended that policy. Since then, the move to a 1% policy rate has been deliberately gradual, supported by careful communication aimed at limiting market disruption. Some economists now see a potential terminal rate around 1.75%. Markets are watching Japanese government bonds closely. A September hike would likely push yields higher. With Japanese investors among the world's largest holders of foreign bonds, including U.S. Treasuries, a meaningful rise in domestic yields could spur repatriation flows with spillovers across global fixed-income markets. Yen carry trades, which unwound sharply in mid-2024, also remain highly sensitive to shifts in interest-rate differentials.

The UK is preparing to give the Bank of England a new mandate aimed at supporting innovation in stablecoins and other digital assets.