UK stablecoin regulation at critical juncture as Coinbase CEO pushes for faster adoption

Coinbase CEO Brian Armstrong has intensified pressure on UK policymakers to accelerate UK stablecoin regulation, warning that delays could see London lose its edge in the global crypto race. His high-stakes lobbying comes as the Financial Conduct Authority (FCA) finalizes rules that could make Britain a leader in digital asset oversight, or force innovators to flee.

Armstrong’s London push coincides with regulatory tipping point

Fresh from meetings with Treasury officials and bank executives, the Coinbase chief framed UK stablecoin regulation as a make-or-break issue for the country’s financial future.

“The UK has 12 months to get this right before firms start voting with their feet,” a Coinbase insider revealed.

The urgency follows the FCA’s June 13 deadline for feedback on its stablecoin regulation proposals, which include:

• No volume caps on foreign stablecoins (unlike the EU’s MiCA framework)

• Streamlined licensing for crypto custodians

• Retail access to crypto ETNs by Q1 2026

Why stablecoins are the battleground

At the heart of the stablecoin regulation debates is a trillion-dollar question: Can Britain attract issuers like Circle (USDC) and Tether (USDT) without compromising financial stability?

Industry leaders argue that current drafts strike the right balance.

“The UK’s approach to UK stablecoin regulation avoids kneejerk bans while ensuring tax transparency,” said Tom Duff Gordon, Coinbase’s international policy VP.

His team helped draft the OECD-aligned reporting rules now under review.

The global domino effect

With Singapore finalizing its stablecoin framework and Dubai launching a crypto-free zone, analysts say UK stablecoin regulation delays could prove costly.

“Every month without clear UK stablecoin regulation sees another startup incorporate in Luxembourg,” noted Ripple’s UK director.

The payments firm recently threatened to redirect £500M in planned investments unless rules solidify by 2025.

Political winds shifting

Chancellor Rachel Reeves appears receptive, telling Parliament last week: “Our stablecoin regulation will mirror London’s historic role—open for business but tough on recklessness.” Her April “Plan for Change” earmarked £1.2B for fintech hubs outside London.

Yet skepticism persists. A Clear Junction survey found just 15% of crypto firms believe current UK stablecoin regulation drafts will work.

The compliance countdown begins

As the FCA processes last-minute industry feedback, all eyes are on three make-or-break elements of UK stablecoin regulation:

1. Banking access – Will stablecoin issuers get UK clearing accounts?

2. Tax clarity – HMRC still hasn’t defined staking rewards’ status

3. Cross-border rules – How will foreign stablecoins be treated?

Armstrong’s message was blunt:

“Get stablecoin regulation finalized before the next bull run, or watch the ecosystem relocate.”

With the EU’s MiCA fully active by December 2025, the clock is ticking.