UK multi-party lawmakers call for revision of the stablecoin regulatory framework proposed by the Bank of England

According to CoinDesk, a coalition of MPs from various parties in the UK has written to Chancellor of the Exchequer Rachel Reeves, urging modifications 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 limit of £20,000, which could undermine the appeal of the City of London as a global financial center, forcing 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 reinforce the UK's position as a global innovation hub.