The Bank of England’s plan to cap stablecoin holdings is sparking an industry revolt

CoinDesk

by Olivier Acuna

February 25, 2026

AI-Generated Deep Dive Summary

The UK’s Financial Conduct Authority (FCA) has selected Revolut, Monee Financial Technologies, ReStabilise, and VVTX to test stablecoin issuance in a regulatory sandbox starting early 2026. However, the Bank of England’s proposal to cap stablecoin holdings—ranging from £5,000 for individuals to £10 million for businesses—has sparked significant backlash. Brian Armstrong, CEO of Coinbase, has criticized these caps, arguing they risk stifling innovation and undermining the UK’s goal of becoming a global crypto hub. Armstrong even launched a petition against the caps, which has garnered over 81,000 signatures. The FCA’s sandbox trials aim to test stablecoin products in real-world conditions, focusing on their use cases for payments, wholesale settlement, and crypto trading. The regulator emphasizes ensuring trustworthiness and consumer protection while supporting the UK’s digital asset strategy. However, industry leaders like Andrew MacKenzie of Agant, developer of the sterling stablecoin, argue that the regulatory timeline is too slow to keep pace with global crypto competition. Comprehensive legislation governing stablecoins is not expected to take effect until 2027, creating a gap between the UK’s aspirations and its execution. Armstrong highlights the importance of innovation in maintaining London’s historical role as a financial leader. He warns that other

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Originally published on CoinDesk on 2/25/2026