A coalition of UK lawmakers is pressing Chancellor Rachel Reeves to revisit the Bank of England’s draft rules for stablecoins, arguing that the current proposals could weaken the nation’s position in fintech and digital finance. In a joint letter signed by senior MPs and peers, the group said restrictive measures risk curbing the appeal of pound-backed stablecoins at a time when digital tokens are gaining traction across global markets.
The lawmakers highlighted that stablecoin transactions reached $27.6 trillion in 2024, which surpassed major card networks, and cited projections showing continued growth. They warned that limits on wholesale usage, a ban on interest for reserves, and a GBP 20,000 cap on holdings could divert market activity toward dollar-denominated alternatives outside UK oversight.
Their appeal comes as the US advances a clearer regulatory path through the GENIUS Act, raising concerns that London’s competitiveness could erode without a more forward-looking framework. The lawmakers urged the Treasury to ensure that regulation supports innovation, attracts investment, and sustains the UK’s role as a global fintech center.
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