Coinbase CEO Pushes Again on UK Stablecoin Caps as Token Income Surge – Decrypt

Coinbase CEO Brian Armstrong warned Tuesday that the Financial institution of England’s proposed stablecoin caps danger costing the UK its standing as a world monetary hub, because the alternate concurrently battles regulators and lawmakers in Washington over guidelines that would make or break its rising income stream.

“Stablecoin guidelines within the UK are being finalized, and are prone to stopping the UK from being globally aggressive within the digital economic system,” Armstrong wrote Tuesday on X. “The present route of the principles does the alternative, and can act as an innovation blocker.”

His put up amplified a petition by Stand With Crypto UK, a commerce advocacy group seeded by Coinbase in 2023, which has gathered greater than 80,000 signatures forward of its March 3 deadline, calling on the British authorities to “drive a pro-innovation stablecoin and tokenization regulatory regime” and appoint a blockchain and crypto czar.

Final 12 months, the Financial institution of England proposed capping particular person stablecoin holdings at $26,350 (£20,000) and enterprise holdings at $12.7 million ( £10 million), whereas requiring 40% of reserves be held in non-interest-bearing central financial institution accounts, a plan British lawmakers warned would “deter innovation, restrict adoption, and push exercise abroad.”

In the meantime, Coinbase earned $1.35 billion in stablecoin income in 2025, up from $911 million the prior 12 months, with $364 million coming in the fourth quarter alone, in a interval that included a web lack of $667 million and whole This autumn income of $1.78 billion.

Bloomberg Intelligence analysts estimate that determine might increase wherever from two to sevenfold underneath the U.S. GENIUS Act, the landmark laws that created America’s first federal stablecoin framework and permitted crypto corporations to supply holders a beneficiant yield on their deposits.

When requested whether or not Coinbase’s coverage positions are pushed extra by financial incentives or systemic danger issues, Clearpool COO Steven Wu instructed Decrypt the problem is “broader than one firm’s income,” noting the true query is “whether or not regulation focuses on managing danger correctly, somewhat than limiting scale.”

If the Bloomberg projection materializes, it indicators that stablecoins will turn into “core monetary infrastructure, not a distinct segment crypto product,” and in that situation, onerous caps on holdings might “restrict the UK’s capability to seize significant liquidity and institutional participation.”

The yield query has turn into a degree of competition as America’s banking foyer, alarmed that interest-bearing stablecoins might pull deposits away from conventional accounts, pushed efficiently to incorporate yield restrictions within the CLARITY Act, a broader market construction invoice the Trump administration has declared a prime legislative precedence, urgent for passage by spring. 

The draft laws prolonged the ban to exchanges like Coinbase, immediately threatening its revenue-sharing settlement with Circle Web Group, by way of which Coinbase collects a reduce of the curiosity USDC’s reserves generate.

Final month, Armstrong pulled the corporate’s help for the CLARITY Act simply hours earlier than a Senate Banking Committee markup, declaring the draft ‘materially worse than the present established order’ and that he would ‘somewhat don’t have any invoice than a foul invoice.’

Regardless of the fallout, the Trump administration has stored Coinbase on the desk, with White Home officers convening one other assembly final week with banking representatives and the Crypto Council for Innovation to handle stablecoin yield, although no settlement has but been introduced.