According to DeepTechFlow, on March 4, as reported by Cointelegraph, the UK House of Lords questioned Tom Duff Gordon, Vice President of International Policy at Coinbase, on Wednesday, focusing on whether stablecoins could lead to a loss of bank deposits and introduce new risks to the UK financial system.

Gordon stated that fully backed and regulated stablecoins are ‘safer than uninsured bank deposits’ because they are backed 1:1 by cash and high-quality government securities and can be redeemed at face value. He emphasized that stablecoins can significantly reduce payment costs and accelerate cross-border payments.

Members of the UK House of Lords questioned the redemption risks of stablecoins during a crisis, their potential impact on banks, and their role in criminal activities. Gordon countered that concerns about bank disintermediation were ‘grossly exaggerated,’ while stressing that Coinbase strictly enforces KYC and anti-money laundering measures.

Innovate Finance Chief Strategy Officer Adam Jackson warned that the UK may establish a regulatory regime that is "stricter and less competitive than the EU's MiCA framework," putting the UK behind in stablecoin innovation competition against the US and Europe.