uk

The UK government has started a fresh review of stablecoins. This move comes as lawmakers try to understand how this fast growing sector could affect the country economy and money system. The review is led by the House of Lords Financial Services Regulation Committee. The goal is to study how stablecoins are growing and whether current plans to regulate them are fair and effective.

The committee has asked experts companies and the public to share views on stablecoins. They want to know how much these digital assets could grow in the coming years. They are also looking at the risks and benefits. One major focus is how stablecoins might affect control over money and the wider UK financial system. Another key question is whether stablecoins linked to the British pound can compete with those from other countries.

The chair of the committee said the review will also test whether plans from the Bank of England and the financial regulator are balanced. The aim is to protect the system without blocking progress. Submissions for the review will stay open until March eleven two thousand twenty six. This fits with the government plan to finalize stablecoin rules before the end of this year.

Earlier the Bank of England shared draft rules for pound based stablecoins. These rules explain how reserve funds should be held. Under the plan sixty percent of reserves could be placed in short term UK government bonds. This would allow issuers to earn some return. The other forty percent would be kept at the central bank and would not earn interest.

Regulators also suggested limits on how much stablecoin a person or a business can hold. The goal is to reduce risk to the financial system. These limits are meant to stop large flows of money leaving banks too quickly. Traditional banks worry that if too much money moves into stablecoins it could reduce lending and hurt the economy.

Not everyone supports these ideas. Some people in the crypto space say the rules are too strict. They argue that limits on holdings and interest make pound based stablecoins less attractive. If users cannot earn enough or hold enough value they may choose foreign options instead.

Critics also point to the United States. There stablecoin rules are more flexible. Users do not face strict holding caps. Issuers can earn interest on reserves more freely. This has helped dollar based stablecoins grow fast and dominate the market.

Right now pound based stablecoins play a very small role. Their total value is tiny compared to the global market. Most stablecoins are linked to the US dollar. The euro comes next but still far behind. This raises concern that the UK could fall further behind if its rules are too tight.

Lawmakers now face a difficult balance. They must protect banks and financial stability while also allowing innovation. If rules are too loose risks increase. If rules are too strict growth may move elsewhere.

The new inquiry shows that the UK wants more feedback before making final decisions. It is part of a wider effort to create clear rules that support safety and growth. The outcome of this review could shape the future of stablecoins in the UK and decide whether pound based options can compete on the global stage.
#cryptooinsigts #UK #CryptoNewss #Binance

Il Regno Unito sta compiendo una mossa decisiva per consolidare la sua posizione come hub globale per le criptovalute. Il Comitato per la Regolamentazione dei Servizi Finanziari della Camera dei Lord ha ufficialmente avviato un'inchiesta sulla crescita e la regolamentazione proposta delle stablecoin.
Questo non è solo un altro aggiornamento normativo secco—è un "appello per prove" critico che plasmerà il modo in cui le stablecoin come $USDT , $USDC e i futuri token supportati da Sterling operano entro i confini del Regno Unito.
🔍 Il Nucleo dell'Inchiesta: 6 Domande Chiave