Stablecoins Get Backing From Cross-Party UK Lawmakers Urging Pro-Innovation Rules

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Stablecoins Get Backing From Cross-Party UK Lawmakers Urging Pro-Innovation Rules The group calls for a forward-looking framework to maintain the U.K.'s fintech leadership and attract international investment. By Omkar Godbole , AI Boost | Edited by Sam Reynolds Dec 12, 2025, 5:43 a.m. U.K. joint parliamentary letter backs stablecoin innovation. What to know : A coalition of U.K. lawmakers is urging Chancellor Rachel Reeves to revise the Bank of England's proposed stablecoin framework to prevent stifling innovation and capital flight. Lawmakers warn that current proposals could make pound-backed stablecoins unattractive, pushing investors toward dollar-pegged alternatives. The group calls for a forward-looking framework to maintain the U.K.'s fintech leadership and attract international investment. A cross-party coalition of U.K. lawmakers has called on Chancellor Rachel Reeves to step in and ensure Britain’s regulatory framework for stablecoins doesn’t stifle innovation or drive capital overseas, warning that the Bank of England’s current proposals risk risks undermining the City of London's appeal as the global financial hub. In a letter dated Dec. 11, 2025, addressed to the Chancellor and signed by prominent MPs and peers including Sir Gavin Williamson, Viscount Camrose, and Baroness Verma, the group said that stablecoins, or digital tokens pegged to an external reference such as traditional fiat currencies, are fast becoming a pillar of the digital economy. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . These tokens are reshaping financial transactions by lowering costs, accelerating settlements, and promoting financial inclusion, they argued. “Stablecoins are reshaping financial infrastructure,” the lawmakers wrote, noting that transactions reached $27.6 trillion in 2024, surpassing combined activity on Visa and Mastercard by nearly 8%. Citibank, they cited, projects this figure could exceed $100 trillion by 2030. However, they are concerned that the Bank of England's draft framework, which restricts the use of stablecoins in wholesale markets, bans interest on reserves and caps holding at GBP 20,000, risks leaving the country on the sidelines of the impending wave of financial innovation. Such limits, they argued, could make pound-backed stablecoins “unattractive,” driving investors toward dollar-pegged alternatives like USDC and USDT, both of which are beyond U.K. regulatory reach. "The outcome would be a flight from pound-backed digital assets to dollar-based ones, creating a two-tier market in which most on-chain activity is denominated and settled in U.S. dollars,"the lawmakers warned. Their intervention comes as the U.S. moves aggressively through its GENIUS Act to establish regulatory clarity for digital assets, raising fears that London’s once-unquestioned leadership in fintech and capital markets could be eroded by policy indecision at home. The letter concluded by calling for a forward-looking stablecoin framework, which will secure international investment, supporting high-value fintech growth and reinforce the U.K.'s position as a global hub of innovation. secure international investment, support high-value fintech growth, and reinforce "We welcome your commitment to 'making the UK a world-leading destination for digital assets.' Now is the time to deliver on this ambition. We urge you to intervene," the letter said. Read: IMF Flags Stablecoins as Source of Risk to Emerging Markets, Experts Say We Aren't There Yet Stablecoin Markets AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned by GoPlus What to know : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. View Full Report More For You XRP Lands on Solana, Ethereum and Others, in Boost for Ripple Ecosystem By Shaurya Malwa , CD Analytics 59 minutes ago Wrapped XRP will be tradable on Solana, Ethereum and other chains, allowing exposure across DeFi applications without unregulated third-party bridges. What to know : Hex Trust is launching wrapped XRP (wXRP) to enhance XRP's DeFi and cross-chain utility, with over $100 million in total value locked. The wXRP will be tradable on Ethereum and other chains, allowing exposure across DeFi applications without unregulated third-party bridges. Despite the launch, XRP's price remains range-bound, with significant supply resistance above $2.05 and demand support near $2.00. Read full story Latest Crypto News XRP Lands on Solana, Ethereum and Others, in Boost for Ripple Ecosystem 59 minutes ago CFTC Gives No-Action Leeway to Polymarket, Gemini, PredictIt, LedgerX Over Data Rules 7 hours ago Terraform's Do Kwon Sentenced to 15 Years in Prison for Fraud 7 hours ago U.S. Financial-Risk Watchdog, FSOC, Erased Digital Assets as a Potential Hazard 8 hours ago Bitcoin Rebounds to $93K From Post-Fed Lows, but Altcoins Remain Under Pressure 8 hours ago Chainlink's LINK Drops 5% Despite Coinbase Bridge Deal, But Bottoming Signs Emerge 9 hours ago Top Stories XRP Lands on Solana, Ethereum and Others, in Boost for Ripple Ecosystem 59 minutes ago Terraform's Do Kwon Sentenced to 15 Years in Prison for Fraud 7 hours ago CFTC Gives No-Action Leeway to Polymarket, Gemini, PredictIt, LedgerX Over Data Rules 7 hours ago Bitcoin Rebounds to $93K From Post-Fed Lows, but Altcoins Remain Under Pressure 8 hours ago U.S. Financial-Risk Watchdog, FSOC, Erased Digital Assets as a Potential Hazard 8 hours ago Binance Overhauls Stablecoin Trading with Trump-Linked USD1 11 hours ago