UK House of Lords Questions Coinbase Executive on Stablecoin Risks

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Release Time: 03/04/2026 14:18:45

Summary

The UK House of Lords questioned Coinbase’s Tom Duff Gordon on stablecoin risks, including bank deposit outflows and threats to the financial system. Gordon argued that regulated stablecoins are safer than uninsured bank deposits, as they are fully backed 1:1 by cash and government securities. Lords expressed concerns over redemption risks and CFT compliance. He dismissed fears of bank disintermediation as overstated, noting that stablecoins enable faster, lower-cost payments. Some peers warned that stablecoins could draw risk-seeking assets into unregulated sectors. Gordon reaffirmed Coinbase’s stringent KYC and AML protocols.

Odaily Planet Daily reports: On Wednesday, the UK House of Lords questioned Tom Duff Gordon, Vice President of International Policy at Coinbase, focusing on whether stablecoins could lead to bank deposit outflows and introduce new risks to the UK financial system.

Gordon stated that fully reserved and regulated stablecoins are "safer than uninsured bank deposits," as they are backed 1:1 by cash and high-quality government securities and are redeemable at par value. He emphasized that stablecoins can significantly reduce payment costs and accelerate cross-border payments.

Members of the UK House of Lords questioned the redemption risks of stablecoins during crises, their potential impact on banks, and their role in criminal activities. Gordon countered that concerns about bank disintermediation are “greatly exaggerated” and emphasized that Coinbase strictly enforces KYC and anti-money laundering measures. (Cointelegraph)

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