Bank of England faces calls from UK lawmakers to ease stablecoin plans
Lawmakers said the proposed caps and reserve rules could slow a nascent sterling-backed market, while the central bank is reviewing possible easing.
- The Lords Financial Services Regulation Committee published a report Wednesday urging The Bank to soften proposed regulations on Stablecoins, warning that overly strict requirements could hinder development of the nascent British market.
- Critics argued The Bank's proposed restrictions—including limits of 20,000 pounds per individual and 10 million pounds for businesses—risk harming the competitive standing of the British market compared to neighboring jurisdictions.
- The Lords Financial Services Regulation Committee's report also challenged the requirement for issuers to hold at least 40% of backing assets in non-interest-bearing deposits, saying rules "could have a significant impact on the business viability" of Stablecoins issuers.
- BoE Deputy Governor Sarah Breeden admitted last month that initial proposals were "overly conservative," noting the central bank is "looking very hard at whether there are different ways" to manage Stablecoin risks.
- Authorities plan to finalize stablecoin rules by year-end, with the Lords Financial Services Regulation Committee advocating for a "principles-based, less prescriptive approach" that allows monitoring market growth before imposing strict holding limits.
21 Articles
21 Articles
Bank of England faces calls from UK lawmakers to ease stablecoin plans
British lawmakers urged the Bank of England on Wednesday to soften planned rules on stablecoins, warning that overly strict requirements could hinder the development of a nascent sterling-backed market.
Cointelegraph
The New York LedgerUK Lords Warn BoE on Strict GBP Stablecoin Rules
House of Lords backs swift UK stablecoin regulation but warns the Bank of England that strict reserve, holding and interest rules risk undermining pound stablecoins.
UK Lawmakers Urge Stablecoin Rule Softening
British lawmakers have urged the Bank of England (BoE) to soften its proposed rules for stablecoins, warning that overly strict requirements could impede the development of a nascent sterling-backed market. A cross-party House of Lords committee, in a report issued on Wednesday, advised the central bank to reconsider proposals that include capping the amount of stablecoins held by individuals and businesses, and requiring issuers to back tokens …
Why Britain’s Stablecoin Plans Just Took A Major Turn?
The debate over stablecoins has entered a new phase in the United Kingdom. Policymakers now face a critical decision that could shape the country’s position in the global digital economy. Recent developments suggest growing concern that restrictive rules may slow innovation at a time when other nations continue to embrace blockchain-based financial products. Many industry participants believe stablecoins could become a key part of future payment…
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