UK Parliament Opens Inquiry Into Stablecoin Regulation

Crypto News Regulation

UK Parliament Launches Inquiry Into Stablecoin Regulation Plans

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 29, 2026

Key Takeaways

The UK’s House of Lords is reviewing proposed stablecoin rules to ensure fair and balanced regulation by the BoE and FCA;
Public and expert feedback is open until March 11, with a hearing planned to gather further insights on the proposals;
The BoE and FCA aim to finalize a framework for systemic stablecoins by year-end, which would require 40% reserves at the central bank.

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UK Parliament Launches Inquiry Into Stablecoin Regulation Plans

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The UK’s House of Lords Financial Services Regulation Committee has started reviewing the government’s proposed rules for stablecoins.

According to a statement, the committee invited written opinions from the public, experts, and industry players until March 11. It will also hold a public hearing to gather direct input.

According to committee chair Baroness Noakes, the goal is to decide whether the Bank of England (BoE) and the Financial Conduct Authority (FCA) have created fair and balanced plans for regulating stablecoins.

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The BoE has already made clear that stablecoin regulation is a top focus for 2026, alongside projects involving tokenized collateral and its Digital Securities Sandbox. The bank is working with the FCA on a shared framework for “systemic stablecoins”.

Sasha Mills, the BoE’s executive director for financial market infrastructure, explained at the Tokenisation Summit that the plan may allow major stablecoin issuers to hold deposit accounts with the BoE.

She also said the central bank might set up a liquidity support system to act as a safety net.

The BoE expects to complete this framework by the end of the year. Under its proposal, any stablecoin classified as systemic must be fully backed, with at least 40% of its reserves held as central bank deposits.

These rules are designed to make such tokens as reliable as existing money.

Meanwhile, the FCA recently began the last phase before making formal changes to rules about digital assets. What did the agency say? Read the full story.