House of Lords Committee Urges Regulators to Ease Stablecoin Rules

the House of Lords Financial Services Regulation Committee stated today that the UK is lagging behind the US and the EU in stablecoin regulation. The committee urged the Bank of England and the Financial Conduct Authority (FCA) to amend several proposals, including reconsidering the holding limits of £20,000 for individuals and $10 million for enterprises, the 40% non-interest-bearing central bank deposit reserve requirement, and restrictions on commercial bank issuance. It also recommended that the FCA review the k-factor capital requirements, which scale based on issuance volume rather than risk proportionality. (The Block)