UK House of Lords Launches Inquiry into Stablecoin Regulations

The UK House of Lords Financial Services Regulation Committee has initiated a public consultation on proposed stablecoin rules, marking a pivotal step in the country's approach to digital asset oversight. The inquiry will scrutinize regulatory frameworks drafted by the Bank of England and Financial Conduct Authority, assessing their balance between innovation and risk mitigation.

Baroness Noakes, chair of the committee, emphasized the need to evaluate how stablecoins might disrupt traditional financial services while creating new opportunities. The consultation period remains open until March 11, with plans for public hearings to gather oral evidence alongside written submissions.

The Bank of England has signaled its intention to prioritize stablecoin regulation and tokenized collateral policies by 2026, reflecting growing institutional recognition of digital assets' role in modern finance. This MOVE positions the UK at the forefront of cryptoasset regulation among major economies.