The U.K. government has published a consultation paper that outlines a strategy to reduce risk for investors holding stablecoins.
- The government recommends changing existing legislation to give the Bank of England power to appoint administrators to oversee insolvency arrangements with failed stablecoin issuers.
- “Since the initial commitment to regulate certain types of stablecoins, events in crypto asset markets have further highlighted the need for appropriate regulation to help mitigate consumer, market integrity and financial stability risks,” the Treasury said in its proposal, which will be considered by Parliament.
- The deadline for feedback on the consolation is Aug. 2.
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