The UK cross-party parliamentary alliance recently wrote to Chancellor Rachel Reeves, urging the government to revise the current stablecoin regulation draft to avoid stifling innovation and preventing capital outflows. The letter was signed by several prominent MPs and nobles, including Sir Gavin Williamson, Lord Camrose, and Baroness Wilma, directly criticizing the Bank of England’s current regulatory proposals as “potentially overly restrictive.”
The MPs emphasized that stablecoins have become a vital infrastructure of the digital economy, playing an increasingly critical role in the global financial system. In 2024, stablecoin trading volume reached $27.6 trillion, surpassing the combined volume of Visa and Mastercard transactions, and is expected to break through $100 trillion by 2030. They believe stablecoins are reshaping the way payments, settlements, and cross-border finance operate, and are also the core driver of future financial inclusion and efficiency improvements.
However, the draft regulatory framework introduced by the Bank of England is viewed by the MPs as a significant risk to the UK’s competitiveness. The draft includes banning interest on reserves, restricting stablecoin use in wholesale markets, and setting a cap of £20,000 per user. The MPs warned that these restrictions would seriously undermine the appeal of pound-stablecoins, forcing market capital to shift toward US dollar stablecoins (such as USDT and USDC), creating a “dollar-dominated on-chain dual market” outside the UK regulatory scope.
Meanwhile, the US is advancing the GENIUS Act to create clearer regulations for digital assets, while the UK’s slower policy pace could weaken London’s position as a global fintech hub. The letter pointed out that if the UK fails to develop a more forward-looking stablecoin framework in time, it will miss the opportunity to lead the next wave of financial innovation.
The MPs called on the government to act swiftly to establish a friendly and investment-friendly regulatory system to ensure the UK maintains its fintech advantage. “We welcome your commitment to making the UK a leading destination for digital assets. Now is the time to turn that commitment into action,” the letter stated. (CoinDesk)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Swiss Franc Stablecoin Rolls Out Faster: UBS Group, Sygnum Bank, and Other Institutions Enter the Game
Several Swiss financial institutions jointly launched a Swiss franc stablecoin sandbox test, aiming to build a blockchain-based digital settlement layer and promote stablecoin payments and asset transfers. This project is subject to regulation and will continue until 2026, to accumulate experience for future commercialization. This move strengthens Switzerland’s competitive edge in the digitization of finance and indicates that the global financial system is evolving toward “on-chain” development.
GateNews1h ago
USD Coin trading volume surges 95%! Circle executives meet with the Bank of Korea in a flurry of meetings as the stablecoin battle escalates
In 2026, the Korean crypto market will see significant changes, with USD Coin trading activity surging, reflecting growing demand for dollar-pegged stablecoins. Circle’s CEO will visit South Korea to discuss stablecoin use cases and partnerships with multiple banks. At the same time, South Korean regulators are strengthening stablecoin legislation, laying the groundwork for the digital asset market.
GateNews1h ago
A multisig wallet has purchased SKY with 5M USDC via a TWAP method over the past 2 months.
A multisig wallet on a certain chain is purchasing SKY every hour via CoW Swap, with a planned total investment of 5,000,000 USDC units. Half has been executed so far, costing 2,431,000 USDC units.
GateNews6h ago
Circle Introduces Stablecoin Payment Services for Singapore Partners
Gate News Message, April 8, Circle announced the launch of a stablecoin payouts (Stablecoin Payouts) service for Circle Mint Singapore partners, further expanding its payment infrastructure into Asian markets. The feature is designed for global scale, aiming to help businesses automate payment processes, reduce the complexity of manual operations, and complete cross-border fund transfers more efficiently using stablecoins such as USDC.
GateNews7h ago
Circle Issues Additional 1 Billion USDC in 24 Hours
Gate News message, Circle(@circle) has issued another 1 billion USDC in the past 24 hours. According to Lookonchain, Circle(@circle) issued another 250 million USDC 4 hours ago. Over the past month, Circle has issued a total of 10.25 billion USDC on Solana.
GateNews19h ago
