Crypto: Uk Lords Launch Stablecoin Inquiry As Bank Of England Moves To...

The parliamentary inquiry comes as regulators warn that stablecoins could drain bank deposits and reshape payments.

The House of Lords Financial Services Regulation Committee has opened an inquiry into proposed stablecoin rules in the United Kingdom, seeking public input on plans put forward by the Bank of England (BoE) and the Financial Conduct Authority (FCA).

The inquiry will examine how stablecoins could affect traditional financial services such as banking and payments, as well as the opportunities and risks created by their growing use in the UK, the committee said in a Thursday statement.

Lawmakers said the review will assess whether the regulatory frameworks proposed by the BoE and the FCA provide “measured and proportionate responses” to developments in the stablecoin market, according to Baroness Noakes, chair of the committee.

Written submissions from industry participants, experts and members of the public are open until March 11. The committee is scheduled to take oral evidence at a public hearing on Wednesday.

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The inquiry comes as UK authorities continue to refine their approach to stablecoin oversight.

The Bank of England has said advancing stablecoin regulation will be among its top priorities for 2026, alongside work on tokenized collateral and its Digital Securities Sandbox.

Sasha Mills, executive director of financial market infrastructure at the BoE, said the central bank is working jointly with the FCA on a regime for so-called systemic stablecoins, aiming to ensure they meet the same standards as existing forms of money used in the UK economy.

“Our regime proposes to provide systemic stablecoins with a deposit account at the Bank of England while also considering putting in place a liquidity facility to provide a backstop for stablecoin issuers,” she said, speaking at the Tokenisation Summit on Thursday, setting a deadline at the end of the year.

Source: CoinTelegraph