Executives from Coinbase, Kraken and 28 other crypto firms signed an open letter to U.K. Finance Minister Rachel Reeves, saying the country must develop rules that support stablecoin adoption and innovation to avoid falling behind the U.S. CNBC first reported on the letter, which Kraken also shared with The Logic. (The Logic, CNBC)

Talking point: Countries around the world—including Canada—are grappling with U.S. legislation that paves the way for banks and other firms to issue stablecoins, leading to a predicted eightfold growth in the sector to US$2 trillion by 2028. Stablecoins, digital assets whose value is typically pegged to the U.S. dollar, are increasingly being used for consumer payments in addition to crypto trading. The U.K. is developing legislation governing stablecoins that it plans to introduce before the end of the year, but the open letter calls on its government to take a less restrictive approach than it has to date through regulations. Ottawa is also working on legislation, and the European Union is reportedly reviving work around a digital euro in response to the U.S. stablecoin rules. Calls are growing in Canada for laws to manage the risks that U.S. dollar-backed stablecoins pose to the country’s monetary sovereignty and financial stability.