UK lawmakers jointly urge reconsideration of the stablecoin framework: beware of excessive regulation increasing the risk of capital flight

【Chain Wen】Recently, cross-party UK parliamentarians jointly wrote a letter to the Chancellor of the Exchequer, stating that the current stablecoin regulatory framework is too strict. Their core concern is straightforward: the Bank of England’s proposed framework limits the application scenarios of stablecoins in wholesale markets, bans interest on reserves, and caps individual holdings at £20,000. If this plan takes effect, the consequences could be more severe than expected. London’s status as a global financial hub may be weakened, and a large amount of capital might flow into alternative stablecoins pegged to the dollar—essentially, opportunities could be taken away by the US stablecoin ecosystem. The lawmakers’ suggestions are quite pragmatic: build a more forward-looking stablecoin framework that can attract international investment, allow high-value fintech projects to develop in the UK, and ultimately strengthen the UK’s voice in global innovation. Behind this game, it actually reflects the competition among countries for the discourse power over Web3 financial infrastructure.