Coinbase Chief Executive Brian Armstrong has pushed back against the Bank of England’s proposed restrictions on stablecoin holdings, claiming the draft rules could prevent the United Kingdom from remaining globally competitive.
In a post on X, Armstrong warned that the current regulatory trajectory acts as an “innovation blocker” rather than a framework for growth.
Stablecoin rules in the UK are being finalized, and are at risk of preventing the UK from being globally competitive in the digital economy.
For example, the Bank of England is proposing a cap on stablecoin holdings for individuals and businesses.
The UK has a long history of… pic.twitter.com/afn0gLinld
— Brian Armstrong (@brian_armstrong) February 24, 2026
The contentious proposals include a cap of £20,000 ($26,350) on individual stablecoin holdings and a £10 million ($12.7 million) limit for enterprises.
Furthermore, the Bank of England suggested that issuers should hold 40% of their reserves in non-interest-bearing central bank accounts. Armstrong’s public critique supports a petition by Stand With Crypto UK, an advocacy group that has already garnered over 80,000 signatures against these measures.
Balancing innovation and financial stability
The Bank of England and the Financial Conduct Authority (FCA) are currently finalizing the UK’s stablecoin regime, which is expected to integrate digital assets into the broader financial services framework by late 2026 or early 2027. While regulators argue these caps are necessary to maintain financial stability and prevent rapid capital outflows from traditional banks, industry leaders suggest they are protectionist.
British lawmakers have echoed some of these concerns, noting that such tight limits might “deter innovation, limit adoption, and push activity overseas”. This debate mirrors similar friction in the United States, where Armstrong recently pulled support for a market-structure bill due to “too many issues,” including potential bans on stablecoin rewards.
The global stablecoin race
Hong Kong is rapidly advancing its position as a regulated digital asset hub, contrasting with the UK’s potentially restrictive approach to stablecoin regulation. This comes as the global stablecoin transactions rose to a record $33Trillion in 2025.
While Hong Kong is preparing to issue its first stablecoin licenses in March 2026, the UK risks falling behind other digital-asset-friendly jurisdictions. In a significant move to solidify its regulated ecosystem, HashKey Exchange, a licensed trading platform, has listed HSK, the ecosystem token of HashKey Group. This listing is the latest in a series of initiatives by the Group aimed at bridging traditional finance with digital assets.
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