White House · CoinDesk
UK House of Lords committee calls on Bank of England to reconsider proposed stablecoin restrictions
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
A U.K. House of Lords committee said the Bank of England (BOE) should reconsider its proposed limits on consumer stablecoin holdings in a new report.
Key facts
- The U.K.'s central bank proposed limits of 20,000 pounds ($27,000) per coin for individuals and 10 million pounds ($13.5 million) for businesses, which some observers said risked making the country
- The cross-party Financial Services Regulation Committee of the U.K. Parliament's second chamber also advised reconsideration of requirements for stablecoin issuers to hold at least 40% of backing
- A U.K. House of Lords committee said the Bank of England (BOE) should reconsider its proposed limits on consumer stablecoin holdings in a new report
- For its part, the BOE is planning to ease the proposed restrictions, with Sarah Breeden, deputy governor for financial stability, admitting they were "overly conservative," last month
Summary
A U.K. The Financial Services Regulation Committee also advised reconsideration of requirements for stablecoin issuers to hold at least 40% of backing in unremunerated central bank deposits. "Rather than pre-emptively impose holding limits, the Bank should consider monitoring the growth of the market and imposing holding limits only if the financial stability risks clearly warrant it," the House of Lords committee said. The cross-party Financial Services Regulation Committee of the U.K. Parliament's second chamber also advised reconsideration of requirements for stablecoin issuers to hold at least 40% of backing assets in central bank deposits yielding no interest in its "Stablecoins: waiting for regulation" report published Wednesday.