UK Committee Warns 40% Reserve Rule May Weaken GBP Stablecoins

The UK House of Lords Financial Services Regulation Committee has expressed concerns over a proposed 40% reserve-deposit rule, suggesting it could undermine GBP stablecoins. According to NS3.AI, the committee highlighted that the UK is lagging behind the U.S. and the European Union in terms of stablecoin regulation. Additionally, the committee noted that imposing holding limits and an interest ban might restrict the growth of stablecoins.