Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the Bank of England’s proposed retail holding caps on stablecoins on (a) consumer financial freedoms, (b) the competitiveness of UK fintech and (c) the risk of driving digital asset innovation offshore.

The Government recognises that facilitating stablecoin innovation is important for UK competitiveness, and continues to engage with the regulators, including the Bank of England, to ensure a coherent regulatory framework that works for businesses and consumers.

The Government will bring forward legislation later this year to create a financial services regulatory regime for cryptoassets in the UK, including stablecoins.