UK lawmakers are urging the government to adopt pro-innovation regulations for stablecoins, warning that current restrictions could lead to capital flight and diminish London's financial competitiveness. The group highlighted the $27.6 trillion in stablecoin transactions recorded in 2024, with projections reaching $100 trillion by 2030. They cautioned that proposed caps and restrictions might drive investors towards dollar-backed assets, bypassing pound-pegged options. Additionally, the lawmakers stressed the importance of clear capital gains tax policies to foster a competitive digital asset market.