Crypto: Breaking Critics Tell Uk Lords Stablecoins Are Not Future Money

At a House of Lords hearing, witnesses cast doubt on stablecoins as mainstream money, backing strict Bank of England oversight and criticizing the "disastrous" US GENIUS Act for letting non‑banks into “the money business.”

The United Kingdom’s House of Lords heard critical views on stablecoins Wednesday, with witnesses claiming that tokens were mainly “on- and off-ramps into crypto,” rather than the future of money.

The House of Lords held a public session as part of its new inquiry into how stablecoins should be regulated in the country, gathering evidence on their role in payments, banking and financial stability.

The Financial Services Regulation Committee (FSRC) grilled witnesses on stablecoins’ competition with banks, cross‑border use, illicit finance risks and their treatment under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

They heard contrasting views from Financial Times economics commentator Chris Giles and US law professor Arthur E. Wilmarth Jr.

Giles told the committee that stablecoins had not yet taken off in the UK because there was still no “clear legal underpinning and clear regulation,” making it risky for households to hold them as money.

He said that, assuming a robust regime were put in place, the main opportunities would be making transactions and payments “more efficient, cheaper, potentially faster than currently,” especially in cross‑border and large corporate transfers.

Related: UK dodges ‘US malaise’ as regulator finalizes crypto rules

Domestically, Giles was skeptical that sterling stablecoins could meaningfully disintermediate banks, given already instant, low‑cost payments.

He said their current use was mostly “on- and off- ramps” to crypto for an “intrinsically worthless asset,” and “not massively interesting or going to take over the world.”

Source: CoinTelegraph