[UK House of Lords Questions Coinbase Executives on Stablecoin Regulation]

ChainCatcher reports that on Wednesday, the UK House of Lords questioned Tom Duff Gordon, Vice President of International Policy at Coinbase, focusing on whether stablecoins could lead to bank deposit withdrawals and pose new risks to the UK financial system. Gordon stated that fully reserved and regulated stablecoins are “safer than uninsured bank deposits” because they are backed 1:1 by cash and high-quality government securities and can be redeemed at face value. He emphasized that stablecoins can significantly reduce payment costs and accelerate cross-border payments. Members of the UK House of Lords questioned the redemption risks of stablecoins during crises, their potential impact on banks, and their role in criminal activities. Gordon countered that concerns about bank disintermediation are “seriously exaggerated” and highlighted Coinbase’s strict compliance with KYC and anti-money laundering measures. Adam Jackson, Chief Strategy Officer of Innovate Finance, warned that the UK might establish a regulatory framework “more stringent and less competitive than the EU’s MiCA,” which could cause the UK to fall behind the US and Europe in stablecoin innovation and competition.