Cross‑party MPs and members of the House of Lords have urged UK Chancellor Rachel Reeves to rein in the Bank of England’s proposed regime for systemic stablecoins.
A cross-party group of members of the House of Commons and the House of Lords in the United Kingdom, including former Defense Secretary Sir Gavin Williamson, shadow Science and Tech (AI) Minister Viscount Camrose and the former Prime Minister Rishi Sunak’s chief whip, Lord Hart, have urged Chancellor Rachel Reeves to intervene over the Bank of England’s proposed regime for systemic stablecoins.
In a joint open letter to the chancellor on Thursday, they warned that the Bank of England’s proposals for regulating stablecoins could drive innovation and capital offshore.
The parliamentarians said the plans risk turning the UK into a “global outlier” by barring most wholesale use of stablecoins outside the Digital Securities Sandbox, prohibiting interest on reserves and imposing what they call “impractical and anti-innovation” holding caps that could push activity into dollar stablecoins such as USDC (USDC) and USDt (USDT).
