{"id":98271,"date":"2026-06-04T10:03:06","date_gmt":"2026-06-04T10:03:06","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=98271"},"modified":"2026-06-04T10:03:06","modified_gmt":"2026-06-04T10:03:06","slug":"uk-house-of-lords-urges-boe-to-ease-stablecoin-rules-over-competitiveness-concerns","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=98271","title":{"rendered":"UK House Of Lords Urges BoE To Ease Stablecoin Rules Over Competitiveness Concerns"},"content":{"rendered":"
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The House of Lords, the upper chamber of the UK parliament, has urged financial regulators to reconsider some of their controversial stablecoin proposals, warning that the country risks falling behind global leaders if regulation is not done right.<\/p>\n

House Of Lords Outlines Concerns Over Stablecoin Rules<\/h2>\n

On Wednesday, the House of Lords\u2019 Financial Services Regulation Committee published<\/a> a report on the regulation of stablecoins, urging the Bank of England (BoE) to review some areas of its proposed rules \u201cwhere the desired balance between supporting innovation and risk mitigation appears less appropriately calibrated.\u201d<\/p>\n

The committee affirmed its support for many of the central bank\u2019s proposals, including the requirement that issuers back stablecoins 1:1 and the backstop lending facility. However, it noted that aspects of the proposals \u201cneed further consideration.\u201d<\/p>\n

Last year, the central bank proposed<\/a> that systemic stablecoin issuers hold at least 40% of the reserves backing the token as unremunerated bank deposits to ensure \u201crobust redemption\u201d and \u201cpublic confidence.\u201d<\/p>\n

It also suggested a temporary cap on stablecoin ownership, setting holding limits of \u00a310,000 to \u00a320,000 for individuals and \u00a310 million for businesses. The measure resembled the BoE\u2019s proposed approach to the digital pound, aiming to mitigate financial stability risks \u201cstemming from large and rapid outflows of deposits from the banking sector.\u201d<\/p>\n

The policymakers consider that regulators should reevaluate the asset allocation and redemption requirements, citing the \u201cconsiderable operational burdens this would create\u201d and potential negative impact on the sustainability of stablecoin issuers and the UK\u2019s global market competitiveness.<\/p>\n

In addition, the report suggested that the holding limits should be reconsidered, arguing that they could unnecessarily hinder the expansion<\/a> of pound-based stablecoins and prove impractical to implement.<\/p>\n

It also shared concerns about the lack of clarity on the transition from the Financial Conduct Authority\u2019s (FCA) regime to joint regulation alongside the BoE, and the uncertainty surrounding HM Treasury\u2019s plans to determine whether stablecoins are systemic and to bring them into the payments regulatory perimeter.<\/p>\n

UK At Risk Of Falling Behind<\/h2>\n

The Committee affirmed that the shape of the pound-denominated stablecoin market will be \u201cstrongly influenced by the direction of the regulatory regime,\u201d and authorities must \u201ccreate a level playing field so that stablecoins can compete with other forms of payment in the UK.\u201d<\/p>\n

Therefore, the regime must be flexible, responsive, and clear to accommodate future innovations, or the UK will risk \u201clagging behind global counterparts, where regulatory regimes are more established and provide clarity for market participants.\u201d<\/p>\n

The House of Lords\u2019 report follows pressure<\/a> from industry participants and other lawmakers to fight the controversial proposals. In December, members of the House of Lords, the House of Commons, and peers sent a letter to Chancellor Rachel Reeves asking her to oppose the BoE\u2019s stablecoin rules, arguing that they could undermine the government\u2019s efforts to position the UK as an industry leader.<\/p>\n

Last month, BoE\u2019s Deputy Governor for financial stability, Sarah Breeden, stated that the central bank was preparing to ease its regulatory plans. As reported<\/a> by Bitcoinist, Breeden admitted that the proposals may have been \u201coverly conservative.\u201d She also shared that the financial regulator was \u201cgenuinely open\u201d to revisiting the rules and establishing a better regime in which stablecoins can thrive.<\/p>\n

Ultimately, the committee urged regulators to adhere to current timelines and ensure that the final regulatory regime is not delayed. A BoE spokesperson told<\/a> Reuters that the central bank will publish its final policy and draft rules later this month.<\/p>\n

\"stablecoin,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The House of Lords, the upper chamber of the UK parliament, has urged financial regulators to reconsider some of their controversial stablecoin proposals, warning that the country risks falling behind global leaders if regulation is not done right. House Of Lords Outlines Concerns Over Stablecoin Rules On Wednesday, the House of Lords\u2019 Financial Services Regulation […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-98271","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/98271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=98271"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/98271\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=98271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=98271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=98271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}