UK Lords panel asks BoE and FCA to recalibrate stablecoin rules, citing £20,000 cap and 40% reserve plan

A UK House of Lords Financial Services Regulation Committee report said Britain is falling behind the U.S. and EU on stablecoin regulation and urged the Bank of England and the FCA to adjust proposals it says could hinder market development. The panel highlighted the BoE's proposed £20,000 individual holding cap and a requirement for systemic issuers to keep at least 40% of backing assets in unremunerated central bank deposits, while also questioning the FCA's volume-based k-factor capital approach.