The House of Lords Financial Services Regulation Committee has invited submissions to its new inquiry on the growth and proposed regulation of stablecoins in the UK.

We have discussed stablecoins previously here, in the context of the Financial Conduct Authority (FCA) publishing a consultation on proposed rules and guidance as part of its work to create a financial regulatory regime for cryptoassets.

In broad terms, a stablecoin is a form of cryptocurrency that seeks or purports to maintain a stable value with reference to a fiat currency (usually the US dollar) through the issuer of the stablecoin holding, or arranging for the holding of, fiat currency or a combination of fiat currency and other assets.

The Committee’s inquiry will assess the opportunities and risks that the growth of stablecoins presents, as well as whether the regulatory frameworks proposed by the FCA and Bank of England represent a measured and proportionate response.

In particular, its Call for Evidence asks about the current market for stablecoins (who uses them, and for what purposes), what risks their growth poses to the UK’s economy, financial services sector, and retail customers, and whether there are any financial crime considerations to bear in mind. It also asks about the implications for the existing regulatory environment, and whether lessons can be learned from other jurisdictions.

The deadline for submissions is 11 March 2026, and more information can be found here.