Here’s what happened in crypto today

Today in crypto, the Bank of England has invited feedback on its proposed stablecoin framework, with the aim of finalizing the rules in the second half of 2026, pressure on the crypto market could ease as the US Senate cut a deal to end a government shutdown, and President Donald Trump says Americans might get a $2,000 tariff “dividend.”

Bank of England launches stablecoin consultation, final rules to come in 2026

The United Kingdom’s central bank is moving toward stablecoin regulation by publishing a consultation paper proposing a regulatory framework for the asset class.

The Bank of England (BoE) on Monday released a proposed regulatory regime for sterling-denominated “systemic stablecoins,” or tokens it said are widely used in payments and therefore potentially pose risks to the UK financial stability.

Under the proposal, the central bank would require stablecoin issuers to back at least 40% of their liabilities with unremunerated deposits at the BoE, while allowing up to 60% in short-term UK government debt.

The consultation paper seeks feedback on the proposed regime until Feb. 10, 2026, with the BoE planning to finalize the regulations in the second half of the year.

As part of the proposal, the central bank suggested capping individual stablecoin holdings at 20,000 British pounds ($26,300) per token, while allowing exemptions from the proposed 10,000 pound ($13,200) for retail businesses.

“We propose that issuers implement per-coin holding limits of 20,000 GBP for individuals and 10 million pounds for businesses,” the BoE stated, adding that businesses could qualify for exemptions if higher balances are needed in the course of normal operations.

Regarding stablecoin backing, the BoE suggested that issuers that are considered systemically important could be allowed to hold up to 95% of their backing assets in UK government debt securities as they scale.

Crypto could get relief as Senate cuts deal to end shutdown

The crypto market could soon see some much-needed relief after the US Senate reached an agreement on Sunday on a three-part budget deal to end the government shutdown, Politico reported.

CNN reported that the Senate passed the bills in a 60-40 vote on Sunday night, just clipping the minimum 60 votes needed to pass them.

It was Republican Senate Majority Leader John Thune’s 15th attempt to win Democratic support for a House-approved bill, putting the record 40-day government shutdown within reach of being lifted this week.

Ongoing uncertainty over when the US government would reopen has been a key factor holding back Bitcoin (BTC) and the broader crypto market from mounting a rebound.

Bitcoin initially rallied to a new high of $126,080 six days into the government shutdown on Oct. 6, but has since fallen over 17% to $104,370, CoinGecko data shows. 

Bitcoin’s fall over the past month saw it drop by double-digit percentage points on Oct. 10 after US President Donald Trump’s announcement of 100% tariffs on China sent shock waves throughout the markets.

Trump announces possible $2,000 tariff “dividend”

United States President Donald Trump announced on Sunday that most Americans will receive a $2,000 “dividend” from revenues collected from tariffs, which are currently undergoing legal review by the US Supreme Court.

Trump maintained that the Executive Branch has the right to impose tariffs on other countries and floated the possible dividend in a Truth Social post:

“We are taking in trillions of dollars and will soon begin paying down our enormous debt — $37 trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2000 a person, not including high-income people, will be paid to everyone.”

Several market analysts celebrated the move as positive for crypto prices, as economic stimulus and capital injections tend to flow into asset markets, but others warned of the long-term negative impact of payouts on the US dollar and consumer purchasing power.