UK House of Lords report criticizes pound stablecoin regulation for lagging behind Europe and the US

According to a report by the UK House of Lords Financial Services Regulation Committee, the global stablecoin market capitalization has exceeded $310 billion, but the pound stablecoin market is still in its early stages, and the regulatory framework lags behind the United States (GENIUS Act) and the European Union (MiCAR). The report criticizes the Bank of England's requirement that systemic stablecoin issuers deposit at least 40% of reserve assets in non-interest-bearing central bank accounts, stating that this move undermines profitability and international competitiveness. The proposed holding limits (£20,000 per individual and £10 million per company) are difficult to implement and may suppress market development; the T+1 redemption requirement increases operational burden; restrictions on deposit institutions issuing stablecoins under independent brands are too stringent. The report acknowledges the innovation of the liquidity support loan mechanism and calls for the regulatory framework to come into effect as scheduled on October 25, 2027.