1st Report - Stablecoins: waiting for regulation

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".

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

Published 9 September 2026.

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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.

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