UK Lords Probe Stablecoins as BoE Finalizes Systemic Rules
The House of Lords has launched a parliamentary inquiry into stablecoins following repeated warnings from UK regulators that these digital assets could siphon deposits from traditional banks and alter the structure of payment services. Lawmakers are pressing for clarity on consumer protection, oversight and how stablecoins would be integrated into the existing financial safety net if they scale rapidly.
At the same time the Bank of England is finalizing a framework to designate large stablecoin issuers as systemically important, which would subject them to tougher prudential and operational requirements. The moves matter because they signal closer regulatory scrutiny and potential costs for issuers, while aiming to reduce contagion risk for banks and payment infrastructures as crypto-based payments grow. Markets and payment providers will watch how rules balance innovation with financial stability.