The All-Party Parliamentary Group for Cryptocurrency recently wrote to Chancellor of the Exchequer Rishi Sunak, urging the government to amend the current stablecoin regulatory draft to avoid stifling innovation and preventing capital outflows. The letter was co-signed by several prominent MPs and nobles, including Sir Gavin Williamson, Lord Camrose, and Baroness Wilma, directly criticizing the Bank of England's current regulatory proposal as "potentially overly restrictive."
The MPs emphasized that stablecoins have become an essential infrastructure of the digital economy, playing an increasingly critical role in the global financial system. In 2024, stablecoin trading volume reached $27.6 trillion, surpassing the combined trading volumes of Visa and Mastercard, and is expected to break $100 trillion before 2030. They believe that stablecoins are reshaping the way payments, settlements, and cross-border finance operate, and are also the core driver of future financial inclusion and efficiency improvements.