Stablecoins under regulatory scrutiny
As reported by The Block news portal, Coinbase policy executive Tom Duff Gordon appeared before the UK House of Lords and urged regulators to abandon the proposed limits on the issuance of Bank of England stablecoins.
According to Gordon, stablecoins play a crucial role in the development of financial innovations, and therefore should be regulated, not restricted. He also called for allowing rewards on stablecoins and revisiting their reserve requirements.
The Bank of England's initiative to limit stablecoin issuance has sparked an ambiguous reaction in the crypto community. Proponents of the technology believe this could slow down the development of digital finance in the UK. Regulators, in turn, are concerned about the risks associated with the mass proliferation of private stable coins.
Towards international equivalence
Gordon also urged UK regulators to seek international equivalence agreements to ensure cross-border compatibility of stablecoins. This could contribute to their wider adoption and acceptance.
Overall, Coinbase's position reflects the crypto industry's desire for balanced regulation that takes into account the interests of both innovators and regulators' concerns. Likely, we will see a continued discussion around the status of stablecoins in the UK and other jurisdictions in the near future.