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
Circle CEO: We believe RMB stablecoins conceal enormous business opportunities, and we are optimistic that Hong Kong can become a cross-border payments hub.
Circle CEO Jeremy Allaire said the yuan stablecoin faces a huge business opportunity. He expects that China will roll out related products within the next three to five years and may change its regulatory stance toward digital assets. With rising demand for USDC, Hong Kong’s cross-border payment potential is also gaining attention, and Circle is closely monitoring changes in U.S. regulatory policy.
ChainNewsAbmedia25m ago
Whale Deposits 3,500 ETH to Aave V3, Borrows 8M USDC, and Buys Back 3,386 ETH
A whale deposited 3,500 ETH worth $8.26 million into Aave V3, borrowed 8 million USDC, then purchased 3,386 ETH and redeposited it, now holding 6,886 ETH valued at around $16.22 million.
GateNews2h ago
Circle Launches Cross-Chain USDC Settlement Mechanism Supporting Batch Payments
Circle has launched a new cross-chain USDC payment mechanism for high-frequency settlements, utilizing the Cross-Chain Transfer Protocol to pre-fund transfers and enable batch settlements, thereby minimizing operational overhead and reducing burn operations.
GateNews7h ago
The Stablecoin Era! Circle founder Jeremy Allaire makes the 2026 Global Top 100 Most Influential People list
Against the backdrop of the gradual expansion of global crypto and financial regulation, Circle co-founder Jeremy Allaire was named to Time’s 2026 list of the 100 most influential people, symbolizing the growing importance of stablecoins. Circle has evolved from a digital payments company into a stablecoin platform centered on USDC, and plans to become part of global financial infrastructure. This shift makes its business model more akin to a digital money market fund, foreshadowing the potential profitability and growth of stablecoins in the future.
ChainNewsAbmedia15h ago
Criticized for freezing too slowly: USDC freezes are taking too long! Circle CEO: We will definitely wait for a court order before freezing; we refuse to freeze it on our own
Circle CEO Jeremy Allaire said the company will not proactively freeze wallet addresses unless it receives a court order or law-enforcement requirement. Even amid allegations of hacker money laundering and community backlash, Circle continues to insist on operating under the rule of law.
Jeremy Allaire sets Circle’s law-enforcement bottom line
-----------------------------
As the global cryptocurrency market surges with uncertainty, Circle’s CEO Jeremy Allaire, at a press conference in Seoul, South Korea, made a clear stance on the market’s most sensitive issue of “asset freezes.” He noted that while Circle has technical means to freeze specific wallet addresses, unless it receives a court order or an official directive from law-enforcement agencies, the company will not
CryptoCity21h ago
