On February 10, ISDA responded to the Bank of England’s (BoE) consultation on a proposed regulatory regime for sterling-denominated systemic stablecoins. In the response, ISDA highlights that any regulatory framework should be assessed through the lens of prudent risk management and the Principles for Financial Market Infrastructures (PFMI) published by the Committee on Payments and Market Infrastructures and International Organization of Securities Commissions, with a particular focus on liquidity, credit risk, operational resilience and legal certainty. The response also addresses capital requirements, risk management frameworks for digital assets, and the importance of consistent haircut, custody and collateral eligibility standards in derivatives markets. ISDA emphasizes the need for cross-border regulatory coordination to avoid market fragmentation and reiterates that stablecoins should not compromise existing risk management standards or weaken established PFMIs.