Advocates urge targeted risk assessments over broad blocks, as regulators refine stablecoin rules to balance innovation and financial stability.
UK crypto advocates are pushing banks to adopt a risk-based approach to crypto payments, arguing broad restrictions stifle competition and regulated firms. ClearBank CEO Mark Fairless said interventions should be proportionate to avoid undermining the sector’s growth in the UK.
The campaign coincides with regulatory efforts to establish a framework for stablecoins, including proposed caps on holdings and reserve requirements. Lawmakers and the Bank of England are reassessing these rules to support domestic stablecoin adoption while mitigating risks to traditional banking and financial stability.
Non-dollar stablecoins currently represent a small fraction of the global market, but UK regulators aim to foster a competitive environment. A House of Lords committee recently warned that overly strict requirements could hinder the viability of pound-denominated tokens.