UK House of Lords launches stablecoin regulation inquiry, seeking industry feedback

On January 29, the UK House of Lords Financial Services Regulation Committee announced the official launch of an investigation into the growth of stablecoins and the proposed regulatory framework, and called for written submissions from all sectors of society. The investigation will focus on: · The development of the global stablecoin market and issuance since 2014, and a comparison between the UK market and the US and EU; · The future prospects, user base, and uses of GBP-pegged stablecoins in the UK, and the impact of current regulatory rules; · Opportunities and risks that stablecoins (GBP and USD denominated) bring to the UK economy, financial services industry, and retail users, including potential impacts on monetary policy, traditional financial intermediaries, and financial crime; · The impact of stablecoin development on the statutory objectives of the Bank of England (BoE), Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA); · The influence of the proposed regulatory regimes by the Bank of England and FCA on the adoption of systemic and non-systemic stablecoins within the UK and internationally; · Lessons that the UK can learn from the stablecoin regulatory experiences of jurisdictions such as the US and EU. The committee chair, Lady Noakes, stated that this investigation aims to assess the opportunities and risks that stablecoin growth presents to the UK financial system and overall economy, and to examine whether the proposed regulatory frameworks by the Bank of England and FCA are “prudent and appropriate.” The committee welcomes submissions from all organizations and individuals with expertise or interest in this field.