The Daily Peg
Bank of England signals it's ready to water down stablecoin rules after industry pressure, and US banks aren't giving up on the Clarity Act just yet.
Editorial hello
I’m afraid I’m rushing to a stablecoin-themed lunch today, so the best I can do for a thought for the day is what I already shared on X this morning:
Izabella Kaminska@izakaminska
I’m 17 years or more late to this realisation. But… it dawned on me yesterday quite acutely that giving central banks a financial stability and macro prudential mandate was actually a grave error and is partly responsible for the breakdown of the entire independent central
5:22 AM · May 14, 2026 · 11.8K Views
18 Replies · 20 Reposts · 133 Likes
Izabella Kaminska@izakaminska
In that context I think the below chart from the BoE’s Catherine Mann is pretty notable. What is the signal here really?
My interpretation: post LDI the BoE acted to nip disciplinary market forces in the bud.
You can see that effect in the reduction of repo leverage in the
Izabella Kaminska @izakaminska
Those price-sensitive hedge funds have also increased their net gilt repo borrowing: (aka pledging gilts for funding...but what sort of funding is the question).
6:49 AM · May 14, 2026 · 4.97K Views
4 Replies · 5 Reposts · 27 Likes
Izabella Kaminska@izakaminska
What this means in practice is that the UK’s economic model is bounded by a very clear GBPUSD threshold.
This is because if GBP falls below that threshold the credibility of Britain’s hyper financialised economic model - powered by the collection of global rents - falls apart.
7:09 AM · May 14, 2026 · 3.82K Views
7 Replies · 10 Reposts · 35 Likes
