Derived from Coindesk, a cross-party group of UK lawmakers has urged Chancellor Rachel Reeves to revise the Bank of England’s stablecoin regulations, warning that current proposals risk driving capital overseas and undermining London’s financial standing. The lawmakers highlighted that stablecoin transactions reached $27.6 trillion in 2024 and could exceed $100 trillion by 2030, but restrictive rules such as a GBP 20,000 cap and bans on interest on reserves could make pound-backed stablecoins unattractive. They warned this could lead to a shift toward dollar-pegged alternatives like USDC and USDT, weakening the UK’s position in the global digital asset market.
UK Lawmakers Urge Pro-Innovation Stablecoin Regulations to Prevent Capital Flight
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Summary
A cross-party group of UK lawmakers has called for pro-innovation **stablecoin regulation**, warning that current rules could trigger capital flight and weaken London’s financial edge. They cited $27.6 trillion in stablecoin transactions in 2024, projected to hit $100 trillion by 2030. Proposed caps and restrictions, they argue, could push investors toward dollar-backed assets, bypassing pound-pegged options. The lawmakers also emphasized the need for clarity on **capital gains tax** to support a competitive digital asset environment.
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