Select committee: Financial Services Regulation Committee

Growth and proposed regulation of stablecoins in the UK

Open Opened 28 Jan 2026

Financial Services Regulation Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)

This inquiry will examine the development of, and proposed regulatory response to, stablecoins in the UK. In particular, the inquiry will examine the extent to which stablecoins might disrupt the traditional models of provision of financial services, including for banking and payments services. The inquiry will also assess the potential opportunities and risks that the growth of stablecoins might have on UK’s financial services sector, and whether the Bank of England and FCA’s proposed regulatory frameworks provide measured and proportionate responses to these risks.

Where it stands

The inquiry is open, opened 28 January 2026.

The committee has published 1 report, most recently 1st Report - Stablecoins: waiting for regulation on 3 June 2026.

The government's response

Response from the FCA to the Committee's 1st Report of Session 2026-27, "Stablecoins: waiting for regulation"

Published 9 September 2026. The deadline was 3 August 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The FCA responds that it has published final rules for non-systemic UK-issued qualifying stablecoins, made some "targeted refinements" after the report and consultation feedback, and retains its core framework.

On capital, the FCA says it "reconsidered" the K-factor and reduced it from 2% to 1% of stablecoins issued, but keeps the linear relationship with issuer scale.
On redemption, it has "decided to keep a universal right of redemption for all tokenholders with the issuer", while allowing issuers to contractually outsource redemption at par to third parties.
On rewards, firms may pay rewards from their own account, but time-based rewards are prohibited and issuers may not pass on interest from backing assets. The FCA will do further work on competition and economic implications but says this "does not mean" its position is "due to change".
On freezing assets, it says legislative mandate sits with the Home Office and HM Treasury, and it will "continue to engage" on supporting any changes. It will monitor market risks and review its rules "if needed in the future".

Read the government's response ↗ Report an error

Response from the Bank of England to the Committee's 1st Report of Session 2026-27, "Stablecoins: waiting for regulation"

Published 9 September 2026.

Read the government's response ↗ Report an error

Response from HM Treasury to the Committee’s 1st Report of Session 2026–27, "Stablecoins: waiting for regulation"

Published 9 September 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government welcomes the Committee's report and agrees with its emphasis on proportionate regulation, but does not agree that the UK is falling behind international competitors on stablecoin.

On competitiveness, the government "takes this assessment seriously" but does "not agree with it", saying the UK "compares favourably with a number of jurisdictions" and that it is "not" complacent.
It agrees on the importance of regulation being proportionate and keeping pace with the market. It states the FCA authorisation gateway is expected to open in September 2026, with the regime coming fully into force in October 2027.
On systemic thresholds, the Treasury does "not consider universal thresholds for systemic recognition to be appropriate at this time" and will assess each case individually.
On a competitiveness and growth objective for the Bank, it "recognises the underlying concern" but considers such an objective "could risk diluting" the Bank's financial stability focus. It "will further consider" a secondary innovation objective.

Read the government's response ↗ Report an error

Reports

1st Report - Stablecoins: waiting for regulation3 June 2026

All reports

Evidence

8 oral evidence sessionsLatest 15 April 2026
18 witnesses

All evidence

Recent activity

Response from HM Treasury to the Committee’s 1st Report of Session 2026–27, "Stablecoins: waiting for regulation"9 September 2026, Report published
Response from the Bank of England to the Committee's 1st Report of Session 2026-27, "Stablecoins: waiting for regulation"9 September 2026, Report published
Response from the FCA to the Committee's 1st Report of Session 2026-27, "Stablecoins: waiting for regulation"9 September 2026, Report published

Reports

1 report

1st Report - Stablecoins: waiting for regulation

HC No.: Not recorded
Published: 3 Jun 2026
Items: 0
Government response: Government response published 9 September 2026 (deadline 3 August 2026). Read the government's response: Response from the FCA to the Committee's 1st… ↗ Read the government's response: Response from the Bank of England to the Com… ↗ Read the government's response: Response from HM Treasury to the Committee’s… ↗

Oral evidence sessions

8 sessions

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Date	Session and witnesses	Source
15 Apr 2026	Oral evidence session David Geale · Payment Systems Regulator, Lucy Rigby KC · HM Treasury, Matthew Long · Financial Conduct Authority (FCA)	View ↗
25 Mar 2026	Oral evidence session Rory Tanner · Revolut, Tom Rhodes · Agant Finance Limited	View ↗
18 Mar 2026	Oral evidence session Dante Disparte · Circle, Jesse McWaters · Mastercard	View ↗
11 Mar 2026	Oral evidence session Matthias Bauer-Langgartner · Chainalysis, Sarah Breeden · Bank of England, Sasha Mills · Bank of England	View ↗
4 Mar 2026	Oral evidence session Adam Jackson · Innovate Finance, Tom Duff Gordon · Coinbase	View ↗
25 Feb 2026	Oral evidence session Elise Soucie Watts · Global Digital Finance, Jana Mackintosh · UK Finance	View ↗
11 Feb 2026	Oral evidence session Professor Kern Alexander · University of Zurich, Professor Simon Gleeson	View ↗
4 Feb 2026	Oral evidence session Chris Giles · Financial Times, Professor Arthur E. Wilmarth, Jr. · George Washington University Law School	View ↗

Who gave evidence

18 witnesses

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Witness	Organisation	Sessions
Adam Jackson · Chief Strategy Officer	Innovate Finance	1
Chris Giles · Economics Editor	Financial Times	1
Dante Disparte · Chief Strategy Officer and Head of Global Policy & Operations	Circle	1
David Geale · Managing Director	Payment Systems Regulator	1
Elise Soucie Watts · Executive Director	Global Digital Finance	1
Jana Mackintosh · Managing Director, Payments and Innovation	UK Finance	1
Jesse McWaters · Executive Vice President and Head of Global Policy	Mastercard	1
Lucy Rigby KC · Economic Secretary to the Treasury	HM Treasury	1
Matthew Long · Director of Payments	Financial Conduct Authority (FCA)	1
Matthias Bauer-Langgartner · Head of Policy, Europe,	Chainalysis	1
Professor Arthur E. Wilmarth, Jr.	George Washington University Law School	1
Professor Kern Alexander	University of Zurich	1
Professor Simon Gleeson	Not recorded	1
Rory Tanner · Head of UK Government Affairs and Public Policy	Revolut	1
Sarah Breeden · Deputy Governor for Financial Stability	Bank of England	1
Sasha Mills · Executive Director of Financial Market Infrastructure	Bank of England	1
Tom Duff Gordon · Vice President for International Policy	Coinbase	1
Tom Rhodes · Chief Legal Officer	Agant Finance Limited	1

Correspondence

1 letter

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Published	Direction	Letter
30 Mar 2026	To committee	Letter from Sarah Breeden to Baroness Noakes following up on oral evidence given to the FSRC on 11 March 2026