UK House of Lords Launches Stablecoin Inquiry, February 2026

The House of Lords Financial Services Regulation Committee opened an inquiry into the growth and proposed regulation of stablecoins in the United Kingdom in early 2026. The inquiry is at the evidence-gathering stage. The Committee took oral evidence from Bank of England Deputy Governor Sarah Breeden and Executive Director Sasha Mills on 11 March 2026, and from industry representatives on earlier dates in February 2026. The Committee invited written submissions until 11 March 2026.

The inquiry operates under the authority of the House of Lords Financial Services Regulation Committee. The Committee's mandate derives from its standing terms of reference to scrutinise financial regulation policy in the United Kingdom. The inquiry does not cite a single controlling statute because the UK's stablecoin regulatory regime is still under construction: the Financial Services and Markets Act 2023 granted HM Treasury powers to bring stablecoins within the regulatory perimeter, and the FCA is developing implementing rules through separate consultation papers. The Committee's call for evidence asked respondents to address questions including market structure, consumer protection, systemic risk, and the adequacy of the proposed regulatory regime.

Stablecoin issuers, payment system operators, custodians, and crypto-asset exchanges operating or seeking to operate in the UK market are the entities most directly affected by the inquiry's potential recommendations. The Committee's report, once published, may inform HM Treasury's stablecoin policy and the FCA's final rules. Coinbase, Innovate Finance, Global Digital Finance, UK Finance, Chainalysis, and two academic experts gave oral evidence across earlier sessions. The Bank of England's participation on 11 March 2026 indicates that the inquiry will examine systemic and monetary policy dimensions of stablecoin adoption, including the treatment of stablecoin deposits relative to central bank money.

The inquiry is ongoing; no report or recommendations have been published yet. Oral evidence sessions continue, with the next session scheduled for 18 March 2026. The Committee's findings will be non-binding recommendations to the UK government; implementation would require separate action by HM Treasury or the FCA. The FCA's stablecoin authorisation regime is expected to go live in 2026 under powers in the Financial Services and Markets Act 2023.

Source: House of Lords Financial Services Regulation Committee, Inquiry: "Growth and proposed regulation of stablecoins in the UK," opened February 2026, evidence session 11 March 2026. Official URL: https://committees.parliament.uk/work/9590/growth-and-proposed-regulation-of-stablecoins-in-the-uk. Confirmed 11 March 2026.

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