Coinbase CEO Pushes Back on UK Stablecoin Caps as Token Profits Surge
Decrypt
by Vismaya VFebruary 25, 2026
AI-Generated Deep Dive Summary
Coinbase CEO Brian Armstrong has criticized the UK's proposed stablecoin caps, warning that they could hinder the country's position as a global financial hub in the digital economy. He argued that these regulations would act as an "innovation blocker," discouraging growth and pushing liquidity overseas. The Bank of England's plan to cap individual stablecoin holdings at $26,350 and business holdings at $12.7 million, along with requiring 40% of reserves in non-interest-bearing accounts, has drawn concerns from lawmakers and industry leaders alike.
Armstrong's comments came as Coinbase reported a significant surge in stablecoin revenue, reaching $1.35 billion in 2023, up from $911 million the previous year. This growth is expected to accelerate further under the U.S. GENIUS Act, which establishes a federal framework for stablecoins and allows crypto companies to offer attractive yields on deposits. However, Armstrong previously opposed the CLARITY Act, a competing regulatory proposal that would have restricted yield offerings, calling it "materially worse" than the current status quo.
The debate over stablecoin regulations highlights a broader tension between managing financial risks and fostering innovation in the cryptocurrency sector. Critics argue that overly restrictive rules could stifle growth and push activity to more permissive jurisdictions. Armstrong's advocacy for a pro-innovation regulatory environment aligns with the growing importance of stablecoins as core financial infrastructure, which Bloomberg Intelligence predicts will become a mainstream component of global finance.
As the UK grapples with its regulatory approach, the stakes are high. If implemented, the proposed caps could limit the UK's ability to attract institutional participation and liquidity, potentially ceding market share to other regions like the U.S., where more favorable regulations are taking shape. This dynamic underscores the critical role of regulatory frameworks in shaping the
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Originally published on Decrypt on 2/25/2026