The Bank of England is investigating growing concerns that financiers’ lending to data centers could spark an AI bubble similar to the dot-com crash. UK regulators are examining market risks as AI companies face lofty valuations, with the central bank warning that many firms could collapse in a major correction reminiscent of the early 2000s technology bubble.
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5 in Finance and 1 in Crypto last week
Intel Profits, $38B Data Center Debt, BOE AI Probe
The technology sector is experiencing a pivotal moment as Intel’s return to profitability signals chipmaker recovery while massive financial commitments to AI infrastructure face growing regulatory scrutiny. Banks are preparing a $38 billion debt offering for Oracle’s data center expansion, even as the Bank of England launches an investigation into data center lending practices amid concerns about an AI investment bubble. This convergence of corporate earnings, massive capital deployment, and regulatory oversight highlights both the optimism and caution surrounding artificial intelligence’s rapid expansion.
read moreFed Rate Cut Looms as Inflation Hits 3%, Bitcoin Awaits
Despite US inflation ticking up to 3.0% year-over-year in September, financial markets remain overwhelmingly confident the Federal Reserve will deliver a rate cut next week. Futures markets price a near-certain 25 basis point reduction, with the policy rate expected to glide toward approximately 3% by October 2026. This monetary policy trajectory carries significant implications for Bitcoin and digital assets, where transmission now occurs through both real yields and volatile ETF fund flows.
read moreUK Inflation Holds Steady, BoE Rate Cut Bets Surge
UK inflation unexpectedly held steady at 3.8% in September, defying forecasts for a decline and triggering increased market speculation about a potential Bank of England interest rate cut before year-end. The Office for National Statistics data revealed consumer prices maintained the same pace as the previous month, prompting Santander strategist Adam Dent to caution that despite the steady reading, inflation remains well above the central bank’s 2% target.
read moreJapan’s First Female PM; BOE Eyes Private Credit Stress Tests
In a landmark political shift, Japan has elected Sanae Takaichi as its first female prime minister through parliamentary vote, while simultaneously across global financial markets, the Bank of England is considering comprehensive stress testing for the private credit sector. These developments signal significant changes in both political leadership and financial regulation frameworks, with the BOE potentially launching system-wide assessments within the next year following its previous examination of core UK financial market risks.
read moreUK Consults on US-Style Stablecoin Rules
The Bank of England is launching a consultation on new stablecoin regulations that closely follow the United States’ approach to fiat-pegged crypto assets. UK crypto industry association CryptoUK has welcomed the move, stating that alignment with US policy would boost confidence in Britain’s digital asset sector and ensure the country remains competitive in the rapidly evolving global crypto landscape.
read moreUK’s Temporary Stablecoin Limits Spark Industry Backlash
The Bank of England has ignited controversy with its proposed temporary restrictions on stablecoin holdings and transactions, drawing sharp criticism from industry groups who argue the measures will stifle innovation and signal an unfriendly stance toward cryptocurrency. Deputy Governor Sarah Breeden has clarified that these limits, first introduced in a November 2023 discussion paper, are intended as a temporary stopgap to ensure financial stability while the central bank ultimately aims to support stablecoins as part of a diverse monetary system.
read moreUK Crypto Regulation: Stablecoin Rules & FCA Requirements
The UK is implementing comprehensive regulatory frameworks for crypto assets, focusing initially on stablecoins and expanding to broader market oversight. The Financial Conduct Authority (FCA) has proposed new authorization requirements and safeguarding rules that will impact issuers, custodians, and consumers alike. The Bank of England will play a crucial role in the regulatory architecture, emphasizing consumer protection while establishing practical compliance pathways.
read moreFarage Demands UK Crypto Regulation Overhaul
Reform UK leader Nigel Farage has intensified his campaign for cryptocurrency regulatory reform in Britain, positioning himself as the political champion for digital asset investors and builders. Speaking at the Digital Asset Summit 2025 in London, Farage criticized the current regulatory vacuum while promising transformative policies including a national Bitcoin reserve and tax cuts if elected prime minister, directly aligning with his political ally Donald Trump’s pro-crypto stance.
read moreBank of England May Exempt Crypto Firms From Stablecoin Cap
The Bank of England is considering a significant exemption for cryptocurrency exchanges and large entities from its proposed £10 million stablecoin holding cap, while maintaining strict limits of £10,000-£20,000 for individual holders. This potential regulatory concession has been met with cautious criticism from industry leaders who argue the restrictions remain fundamentally flawed and could undermine the UK’s position in the global crypto landscape. Despite the central bank’s financial stability justification, experts warn the caps are impractical to enforce and could stifle innovation in Britain’s emerging digital asset sector.
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