In a significant regulatory pivot, the UK government announced on August 27 that it intends to give the Bank of England a new secondary statutory objective to support innovation in payment systems and digital money, explicitly covering stablecoins. HM Treasury's announcement, covered by Cointelegraph, CoinGape, and Blockonomi, clarifies that financial stability will remain the BoE's primary mandate — the innovation objective is subordinate. The legislation travels through an amendment to the Financial Services and Markets Bill, with House of Lords debate scheduled for September 7 and 9, according to Blockonomi. The Bank of England will also be required to report annually to Parliament on its progress under the new objective. Payment Expert reported that the BoE published a draft Code of Practice for systemic stablecoin issuers, open for consultation until September 22, with finalization targeted for end-2026. The systemic stablecoin regime is then expected to allow regulated stablecoins to operate from 2027. CoinGape noted the mandate helps narrow the UK's regulatory gap with the US GENIUS Act and the EU's MiCA framework, even as sterling stablecoins currently hold near-zero global market share. City Minister Lucy Rigby said tokenization and distributed ledger technology 'have the potential to transform financial markets across the globe.'