The House of Lords Financial Services Regulation Committee launched a stablecoin inquiry January 29 with a March 11 deadline for evidence submission.
The parliamentary review examines whether Bank of England and Financial Conduct Authority regulatory frameworks provide "measured and proportionate responses" to stablecoin growth risks.
The inquiry's timing raises questions about its influence given the Bank of England closed public consultation on systemic stablecoin rules February 10, nearly three weeks before Parliament's evidence deadline.
What Happened
Baroness Noakes, committee chair, said the inquiry assesses opportunities and risks stablecoin growth presents for UK financial services and the broader economy.
The committee seeks evidence across six areas including global stablecoin market development since 2014, sterling-denominated market prospects, monetary policy disruption risks, and financial crime considerations.
Questions also examine how proposed Bank of England and FCA regimes affect systemic and non-systemic stablecoin adoption in the UK and internationally.
The committee requests lessons from US and European Union regulatory approaches, both of which advanced stablecoin frameworks ahead of UK implementation.
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Regulatory Timeline
The Bank of England published systemic stablecoin consultation proposals November 10, requiring 40 percent reserves at the central bank and 60 percent in UK government debt. The consultation closed February 10 with final rules expected second half 2026.
The FCA has consulted separately on non-systemic stablecoin rules throughout 2025. Both regulators plan publishing detailed codes of practice and joint implementation frameworks later in 2026.
UK Treasury published draft stablecoin legislation April 2025 with parliamentary approval expected during 2026 and implementation targeted for 2027. The US passed stablecoin legislation summer 2025 with January 2027 implementation.
Parliamentary Scrutiny
The inquiry reflects House of Lords Financial Services Regulation Committee's pattern of examining regulatory frameworks after development processes have substantially progressed.
The committee previously reviewed FCA and Bank of England growth objectives and private markets regulation.
Whether parliamentary evidence can meaningfully influence frameworks already advancing toward finalization remains unclear given regulatory consultations have closed and rule-making timelines are set.
The March 11 deadline allows Parliament six weeks to gather evidence while regulators continue developing detailed implementation requirements independently.
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