UK House of Lords committee calls on Bank of England to reconsider proposed stablecoin restrictions
Key takeaways
- House of Lords committee said the Bank of England (BOE) should reconsider its proposed limits on consumer stablecoin holdings in a new report.
- The cross-party Financial Services Regulation Committee of the U.K.
- Stablecoins are digital tokens pegged to the value of a traditional financial asset, such as a fiat currency like the U.S. dollar or the pound sterling.
House of Lords committee said the Bank of England should reconsider its proposed limits on consumer stablecoin holdings.The Financial Services Regulation Committee also advised reconsideration of requirements for stablecoin issuers to hold at least 40% of backing in unremunerated central bank deposits."Rather than pre-emptively impose holding limits, the Bank should consider monitoring the growth of the market and imposing holding limits only if the financial stability risks clearly warrant it," the House of Lords committee said.
A U.K. House of Lords committee said the Bank of England (BOE) should reconsider its proposed limits on consumer stablecoin holdings in a new report.
The cross-party Financial Services Regulation Committee of the U.K. Parliament's second chamber also advised reconsideration of requirements for stablecoin issuers to hold at least 40% of backing assets in central bank deposits yielding no interest in its "Stablecoins: waiting for regulation" report published Wednesday.