UK Lords Urge Bank of England to Reconsider Stablecoin Rules

A UK House of Lords committee has advised the Bank of England to rethink its proposed restrictions on stablecoin holdings. The committee suggests that instead of imposing strict limits upfront, the Bank should monitor market growth and only introduce holding limits if financial stability risks become evident. They also questioned requirements for stablecoin issuers to hold a significant portion of their backing assets in unremunerated central bank deposits, citing potential impacts on business viability. This call for a more measured approach comes as the Bank of England itself acknowledges its initial proposals might have been overly conservative.