The UK House of Lords Launches Stablecoin Regulation Inquiry, Seeks Industry Input

January 29 — The UK House of Lords’ Financial Services Regulation Committee announced Monday it has officially launched a probe into stablecoin growth and proposed regulatory frameworks, inviting public written evidence submissions. The investigation will focus on these key areas: • Global stablecoin market and issuance trends since 2014, including comparisons between the UK, U.S., and EU markets • Future outlook, user base, and use cases for GBP-denominated stablecoins in the UK, plus the impact of current regulatory rules • Opportunities and risks of GBP- and USD-denominated stablecoins for the UK economy, financial services industry, and retail users — including potential effects on monetary policy, traditional financial intermediation, and financial crime • Implications of stablecoin growth for the statutory objectives of the Bank of England (BoE), Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA) • How the BoE and FCA’s proposed regulatory regimes would affect adoption of systemic and non-systemic stablecoins in the UK and globally • Lessons the UK can draw from stablecoin regulatory experiences in jurisdictions like the U.S. and EU Committee Chair Lady Noakes noted the probe aims to evaluate the opportunities and risks stablecoin growth presents to the UK financial system and broader economy, and to determine if the BoE and FCA’s proposed framework is “prudent and proportionate.” The committee welcomes evidence from all institutions and individuals with expertise or interest in the field.