Coinbase CEO Brian Armstrong has warned that proposed stablecoin rules in the UK risk harming the country’s competitiveness as a global financial hub, arguing the proposed measures could stifle innovation rather than support it.
Coinbase CEO urges UK to rethink stablecoin caps
In an article on X, Armstrong said that stablecoin regulations currently being finalized by the Bank of England included proposals to cap stablecoin holdings for individuals and businesses.
Critics of the framework say suggested limits around £20,000 for individuals and £10 million for businesses could pose structural barriers to adoption in a market valued at more than $180 billion globally.
“The UK has long been a financial hub,” Armstrong wrote, adding that it is essential to embrace blockchain innovation as other jurisdictions quickly move 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. According to parliamentary rules, petitions exceeding 100,000 signatures are considered for debate in Parliament.
The comments sparked debate online. Some users argued that the United States should first resolve its own regulatory uncertainty, pointing to Congress’s passage of the Clarity Act. Others said regulation should manage systemic risk without suppressing innovation, calling for proportionate frameworks that allow stablecoins to evolve responsibly.
The debate highlights growing global competition over stablecoin policy, as lawmakers in the United States and European Union move forward with new frameworks. For London, long considered a leading financial hub, the final shape of the stable rules may determine whether it remains at the forefront of digital asset financing or risks losing ground to more nimble jurisdictions.