The UK House of Lords Financial Services Regulatory Committee released a report on stablecoins, saying that the global stablecoin market value has exceeded $3100 billion, with more than 99% pegged to the US dollar. USDT and USDC together account for about 90%, while the UK’s domestic stablecoin market is still at an early stage. The report warns that if the UK continues to lack a clear regulatory framework, it may fall further behind markets such as the US and the EU, and further strengthen the dominance of dollar stablecoins. The report supports stablecoin issuers maintaining 1:1 reserves and the Bank of England providing backstop liquidity arrangements, but it believes some rules need to be recalibrated, including requiring that systemic stablecoins hold at least 40% of reserves in non-interest-bearing central bank deposits, that redemptions be completed at face value before the end of the next day, and imposing temporary holding limits on systemic stablecoins.