The UK’s Financial Conduct Authority (FCA) has announced the selection of four companies to participate in a stablecoin trial as part of its Regulatory Sandbox initiative. This move coincides with criticism from Coinbase CEO Brian Armstrong, who argues that the UK’s regulatory framework could hinder its position in the global cryptocurrency market.
The selected firms—Revolut, Monee Financial Technologies, ReStabilise, and VVTX—will test stablecoin issuance under real-world conditions, with the aim of informing future regulations. The FCA plans to focus on various use cases, including payments, wholesale settlement, and crypto trading, with testing set to begin in the first quarter of 2026. The results from these trials are expected to contribute to the development of a comprehensive regulatory framework for stablecoins later in the year.
Matthew Long, the FCA’s director of payments and digital assets, emphasized the importance of these trials, stating, “We are supporting U.K. stablecoin issuers to ensure they can be trusted for payments, settlement and trading. It will benefit consumers and financial transactions and help to deliver the FCA’s strategy and the Government’s National Payments Vision.” This statement reflects the FCA’s commitment to fostering a secure environment for digital assets.
However, the regulatory landscape has faced pushback from industry leaders. Armstrong has criticized proposed caps on stablecoin holdings set by the Bank of England (BoE), which range from £5,000 to £20,000 for individuals and £1 million to £10 million for businesses. He has urged UK users to petition Parliament for a reconsideration of these limits, which he believes could stifle innovation and competitiveness in the digital economy.
As of now, the petition has garnered 81,909 signatures, nearing the threshold of 100,000 required for parliamentary consideration. Armstrong expressed concerns on social media, stating, “Stablecoin rules in the U.K. are being finalized, and are at risk of preventing the U.K. from being globally competitive in the digital economy.” His comments highlight a growing tension between regulatory caution and the need for innovation in the fast-evolving cryptocurrency sector.
The UK government has publicly committed to establishing London as a leading hub for global digital asset activity. Nonetheless, comprehensive legislation governing stablecoins and broader cryptocurrency activities is anticipated to be approved by Parliament later this year, with implementation not expected until 2027. This lengthy timeline raises questions about the UK’s ability to maintain its competitive edge in the digital finance landscape.
Andrew MacKenzie, CEO of Agant, a developer of sterling stablecoins, has echoed Armstrong’s concerns, suggesting that the pace of regulatory development is insufficient to support the UK’s ambitions as a global crypto hub. He remarked, “The U.K. has a long history of being a financial hub. Embracing and encouraging innovation, especially when other countries are moving fast here, is important for maintaining that.”
The UK's FCA has selected four companies for stablecoin trials amid criticism from Coinbase's CEO about regulatory caps that may hinder innovation. The trials aim to inform future regulations while industry leaders express concerns over the pace of regulatory development.