Coinbase CEO Brian Armstrong has warned that proposed stablecoin rules in the United Kingdom risk undermining the country’s competitiveness as a global financial hub, arguing that draft measures could stifle innovation rather than support it.
Summary
- Brian Armstrong warned that proposed stablecoin caps by the Bank of England could damage the UK’s competitiveness in digital finance.
- Draft rules reportedly include a £20,000 limit for individuals and £10 million for businesses, prompting concerns the UK could fall behind the $180B global stablecoin market.
- A pro-crypto petition has surpassed 80,000 signatures and could be debated in Parliament if it reaches 100,000.
Coinbase CEO urges UK to rethink stablecoin caps
In a post on X, Armstrong said stablecoin regulations currently being finalized by the Bank of England include proposals to cap stablecoin holdings for individuals and businesses.
Critics of the framework say the suggested limits around £20,000 for individuals and £10 million for businesses, could act as structural barriers to adoption in a market valued at more than $180 billion globally.
“The UK has a long history of being a financial hub,” Armstrong wrote, adding that embracing blockchain innovation is critical as other jurisdictions move quickly to establish clearer crypto frameworks.
He urged UK residents to support a petition organized by Stand With Crypto UK, which has gathered more than 80,000 signatures. Under parliamentary rules, petitions crossing 100,000 signatures are considered for debate in Parliament.
The comments sparked debate online. Some users argued the U.S. should first resolve its own regulatory uncertainty, pointing to the pending Clarity Act in Congress. Others said regulation should manage systemic risk without suppressing innovation, calling for proportional frameworks that allow stablecoins to scale responsibly.
The debate highlights mounting global competition over stablecoin policy, as lawmakers in the U.S. and European Union push forward with new frameworks. For London, long seen as a premier financial center, the final shape of stablecoin rules may determine whether it remains at the forefront of digital asset finance or risks ceding ground to more agile jurisdictions.
