Political Call for Innovation in the UK

British lawmakers from across the political spectrum have called on Chancellor of the Exchequer Rachel Reeves to intervene in the regulation of stablecoins. They argue that the Bank of England’s current proposals could stifle innovation and drive capital away from the UK to other jurisdictions. According to the politicians, overly restrictive rules could weaken London’s position as one of the world’s leading financial centers.

In a letter dated December 11, 2025—signed by figures including Sir Gavin Williamson, Viscount Camrose, and Baroness Verma—the authors emphasized that stablecoins, digital tokens pegged to traditional currencies, are rapidly becoming a cornerstone of the digital economy. They highlighted that these instruments reduce transaction costs, speed up settlements, and expand access to financial services.

The lawmakers noted that in 2024, the total value of transactions conducted using stablecoins reached $27.6 trillion, surpassing the combined activity of Visa and Mastercard by nearly 8 percent. According to forecasts by Citibank, this figure could exceed $100 trillion by 2030.

Their concerns center on the Bank of England’s proposals, which would restrict the use of stablecoins in wholesale markets, ban the payment of interest on reserves, and introduce a holding cap of £20,000. In the view of the letter’s authors, such measures could make pound-pegged stablecoins unattractive, pushing investors toward dollar-based alternatives such as USDC or USDT.

The politicians warned that this could result in a situation where the majority of blockchain-based transactions are settled in US dollars. They also pointed to developments in the United States, where work on the GENIUS Act is intended to provide clear regulatory frameworks for digital assets.

The letter concludes with a call for the creation of modern, forward-looking stablecoin regulations that would attract international investment, support the growth of the fintech sector, and reinforce the United Kingdom’s position as a global hub for innovation.