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

This is the government's response, published 9 September 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