UK Lords Press Coinbase on Stablecoins, KYC and Bank‑Run Risks

Members of the House of Lords pressed Coinbase’s top international policy executive on whether stablecoins would drain bank deposits and create new risks for the UK financial system. Tom Duff Gordon argued fully reserved, regulated stablecoins are safer than uninsured bank deposits because they are backed one‑to‑one by cash and high‑quality government securities and can be redeemed at par.

He added that stablecoins could reduce payment costs, speed up cross‑border transfers and support new AI‑driven “agentic” payment flows. Duff Gordon rejected suggestions that Coinbase was trying to avoid KYC obligations, and warned that overly strict Bank of England and Financial Conduct Authority proposals on capital, holding limits and rewards risk would choke off competition.

He said such a stance could leave the UK trailing the US GENIUS Act and the EU’s MiCA framework in attracting stablecoin innovation.

United Kingdom

stablecoins, coinbase, duff gordon, uk lords, kyc, bank run, boe, fca, mica, genius act