Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that stablecoin issuers maintain sufficient backing assets to protect consumers and financial stability.

On 29 April, HM Treasury published draft legislation for the future financial services regulatory regime for cryptoassets.

The draft legislation includes a new regulated activity for stablecoin issuance in the UK, meaning firms carrying on this activity will need to be authorised by the Financial Conduct Authority.

The Government is seeking to bring forward final legislation before the end of this year.