UK House of Lords Urges Easing Stablecoin Rules as Global Market Reaches $315B

The UK House of Lords Financial Services Regulation Committee on Wednesday recommended revising stablecoin regulations proposed by the Bank of England and Financial Conduct Authority, citing concerns that current rules could stifle market growth. The committee's report flagged BoE's 40% unremunerated central bank deposit requirement for systemic sterling stablecoins as poorly calibrated, and urged scrapping proposed holding caps of £20,000 for individuals and £10 million for businesses, arguing no other jurisdiction imposes such limits. It also called for relaxing restrictions on commercial banks issuing stablecoins and reconsidering the FCA's k-factor capital requirement. The global stablecoin market stood at $315 billion as of 2026, with the UK-issued tGBP representing just $1.53 million of that total. The FCA's full cryptoasset regime is expected to take effect on October 25, 2027.
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