A cross-party group of UK lawmakers has urged Chancellor of the Exchequer Rachel Reeves to oppose the Bank of England's proposal to limit domestic stablecoin holdings, believing that its policies would disrupt the government's efforts to position the UK as a leader in digital assets. Lawmakers said the Bank of England's plan to limit individual stablecoin holdings would push capital overseas rather than mitigate risk, and would hinder innovation, limit adoption, and push activity overseas.

A cross-party group of UK lawmakers has urged Chancellor of the Exchequer Rachel Reeves to oppose the Bank of England's proposal to limit domestic stablecoin holdings, believing that its policies would disrupt the government's efforts to position the UK as a leader in digital assets. Lawmakers said the Bank of England's plan to limit individual stablecoin holdings would push capital overseas rather than mitigate risk, and would hinder innovation, limit adoption, and push activity overseas.