Coinbase policy exec urges UK regulators to drop proposed Bank of England stablecoin caps in Lords hearing

Tom Duff Gordon, Coinbase VP for International Policy, testified before the House of Lords Financial Services Regulation Committee, arguing that the UK risks falling behind if proposed stablecoin rules are too restrictive. A central concern was the Bank of England's proposed temporary holding limits for systemic sterling stablecoins—£20,000 for individuals and £10 million for businesses—which Duff Gordon stated would prevent these stablecoins from scaling sufficiently to serve as serious settlement infrastructure for tokenized capital markets like tokenized gilts and bonds. He presented five key recommendations, including dropping these holding limits, allowing more reserves in short-dated UK government debt, permitting stablecoins for wholesale settlement, pursuing international equivalence, and allowing distributors like Coinbase to pay rewards to holders. Duff Gordon emphasized that well-calibrated regulation is crucial to keeping innovation onshore and reinforcing sterling's role in the digital economy.

(Source：The Block)