UK MPs Warn BoE Stablecoin Rules Could Drive Innovation Offshore
Cross-party MPs and members of the House of Lords have written to Chancellor Rachel Reeves asking her to curb the Bank of England’s proposals for a regulatory regime targeting systemic stablecoins. Lawmakers say the draft rules are heavy-handed, could raise compliance costs for issuers, and may unintentionally drive projects, talent and capital to friendlier jurisdictions.
The debate matters because the UK has sought to position itself as a fintech hub; overly strict requirements for stablecoins risk undermining that goal while doing little to address genuine systemic risks, critics say. MPs call for a proportionate approach and greater engagement with industry and international regulators to keep oversight effective without stifling innovation or investment.