UK Lawmakers Warn Proposed Stablecoin Rules Could Favor USDC, Harm London’s Fintech Hub Status
UK lawmakers are urging Chancellor Rachel Reeves to reconsider the Bank of England's proposed stablecoin regulations, arguing they risk driving innovation and capital offshore. A coalition of MPs and Lords, including former Defense Secretary Sir Gavin Williamson, warns the current framework could undermine London's status as a global financial hub.
The proposed rules may inadvertently favor dollar-pegged stablecoins like USDC over GBP-backed alternatives, lawmakers caution. Stablecoins are increasingly integral to the digital economy, yet the UK risks becoming a 'global outlier' with overly restrictive policies.
The letter highlights how financial innovation follows regulatory clarity. Without competitive frameworks, Britain could lose ground in the $150B+ stablecoin market to jurisdictions with more flexible approaches.
