Stablecoins Get Backing From Cross-Party UK Lawmakers Urging Pro-Innovation Rules

A cross-party coalition of British lawmakers has referred to as on Chancellor Rachel Reeves to intervene and make sure the UK regulatory framework for stablecoins doesn’t stifle innovation or drive capital overseas. She warns that the Financial institution of England’s present proposals threat undermining the attraction of the Metropolis of London as a world monetary centre.

In a letter dated December 11, 2025, addressed to the Chancellor and signed by distinguished MPs and friends together with Sir Gavin Williamson, Viscount Camrose and Baroness Verma, the group mentioned stablecoins, or digital tokens linked to an exterior reference equivalent to conventional fiat foreign money, are quick changing into a mainstay of the digital financial system.

These tokens remodel monetary transactions by decreasing prices, rushing up settlements and selling monetary inclusion, they argued.

“Stablecoins are reshaping the monetary infrastructure,” the lawmakers wrote, noting that transactions reached $27.6 trillion by 2024, surpassing the mixed exercise on Visa and Mastercard by practically 8%. Citibank, they cited, predicts that determine may exceed $100 trillion by 2030.

Nevertheless, they’re involved that the Financial institution of England’s draft framework, which limits the usage of stablecoins in wholesale markets, bans curiosity on reserves and caps of GBP 20,000, dangers leaving the nation on the sidelines of the oncoming wave of economic innovation.

Such limits, they reasoned, may make pound-backed stablecoins “unattractive,” driving buyers to dollar-pegged alternate options equivalent to USDC and USDT, each of that are past the attain of UK laws.

“The outcome could be a flight from pound-backed digital property to dollar-based property, making a two-tiered market by which most on-chain exercise is denominated and settled in US {dollars},” the lawmakers warned.

Their intervention comes because the US strikes aggressively via its GENIUS Act to convey regulatory readability to digital property, elevating fears that London’s as soon as unchallenged management within the fintech and capital markets could possibly be eroded by coverage indecision at house.

The letter concluded with a name for a forward-looking stablecoin framework, which is able to safe worldwide funding, help high-quality fintech progress and strengthen Britain’s place as a world innovation centre.
securing worldwide investments, supporting and strengthening high-quality fintech progress

“We welcome your dedication to ‘making Britain a number one vacation spot for digital property.’ Now could be the time to appreciate this ambition. We urge you to intervene,” the letter mentioned.

Learn: IMF flags stablecoins as supply of threat for rising markets, consultants say we’re not there but