Multi-party UK MPs call for revision of the bank of England's proposed stablecoin regulatory framework

PANews December 13 News, according to CoinDesk, an alliance composed of members of Parliament from various parties in the UK has written to Treasury Secretary Rachel Reeves, urging modifications to the stablecoin framework proposed by the Bank of England to prevent stifling innovation and capital flight. The MPs warn that the Bank of England’s draft framework restricts the use of stablecoins in wholesale markets, prohibits interest on reserves, and sets a holding limit of £20,000, which could weaken London’s status as a global financial hub, forcing investors to turn to dollar-pegged alternative currencies. The letter calls for the establishment of a forward-looking stablecoin framework to ensure international investment, support the growth of high-value fintech, and solidify the UK’s position as a global innovation center.