UK cross-party MPs call for revisions to Bank of England's proposed stablecoin regulatory framework

ChainCatcher news, according to CoinDesk, a coalition of cross-party UK Members of Parliament has written to Chancellor Rachel Reeves, urging amendments to the Bank of England's proposed stablecoin framework to prevent stifling innovation and capital flight.

The MPs warned that the Bank of England's draft framework restricts the use of stablecoins in wholesale markets, prohibits interest on reserves, and sets a holding cap at £20,000, which could undermine the City of London's appeal as a global financial center and force investors to turn to dollar-pegged alternatives. The letter calls for the establishment of a forward-looking stablecoin framework to ensure international investment, support the growth of high-value fintech, and consolidate the UK's position as a global innovation hub.