UK lawmakers team up against central bank stablecoin limit proposal, saying the policy will drive away capital

【ChainNews】Recently, the UK has been making quite a fuss over stablecoin regulation. A bipartisan parliamentary group directly wrote to the Chancellor of the Exchequer, criticizing the Bank of England’s new proposal.

Here’s what happened—last month, the Bank of England proposed a set of stablecoin regulations, including a cap on holdings. Individuals can hold a maximum of 20,000 GBP in stablecoins, while businesses are limited to 10 million GBP. Even more stringent, projects issuing tokens pegged to the pound must deposit at least 40% of their reserves as interest-free deposits with the central bank.

Once these rules were announced, the crypto industry exploded in protest. Now, these lawmakers have come out to speak, feeling that the central bank’s approach is completely backwards. The letter bluntly states: “The original intention was to reduce risk, but this will only push funds overseas.”

Interestingly, among these lawmakers is the CEO of the trading platform CMC Markets. Their core view is simple—if you go ahead with this, the UK’s plan to become a leader in digital assets is basically dead in the water. Fragmented, restrictive policies will only stifle innovation and push activity abroad.

In essence, it’s a tug-of-war: the central bank wants to control risks and proceed cautiously, while lawmakers and industry players believe that being too conservative will cause missed opportunities. This kind of regulatory game is common in many countries, but the UK’s recent moves have been particularly loud.