British MPs from multiple parties are calling for revisions to the Bank of England's proposed regulatory framework for stablecoins.

According to CoinDesk, a coalition of UK MPs from various parties has written to Chancellor of the Exchequer Rachel Reeves, urging amendments to the Bank of England's proposed stablecoin framework to prevent stifling innovation and capital flight. The MPs warned that the Bank of England's draft framework restricts the use of stablecoins in the wholesale market, prohibits interest-bearing reserves, and caps holdings at £20,000, potentially weakening the City of London's appeal as a global financial center and forcing investors to seek alternative currencies pegged to the US dollar. The letter calls for a forward-looking stablecoin framework to secure international investment, support the growth of high-value fintech, and solidify the UK's position as a global innovation hub.