The UK House of Lords Financial Services Regulatory Committee released a report on stablecoins, stating that the global stablecoin market cap has exceeded $310 billion, with over 99% pegged to the US dollar. USDT and USDC together account for about 90%, while the UK’s domestic stablecoin market remains in its infancy. The report warns that if the UK continues to lack a clear regulatory framework, it may fall further behind markets like the US and EU, exacerbating the dominance of USD-backed stablecoins. The report supports a 1:1 reserve requirement for stablecoin issuers and suggests the Bank of England provide backup liquidity arrangements. However, it argues that some rules need recalibration, such as requiring systemic stablecoins to hold at least 40% of reserves in non-interest-bearing central bank deposits, ensuring redemptions are completed at face value by the end of the next day, and imposing temporary holding limits on systemic stablecoins. https://(wublock123.com)/news/uk-lords-warn-no-regulation-will-let-usd-squeeze-pound-stablecoins-62179