Coinbase CEO Warns UK Stablecoin Caps Could Block Innovation in Digital Finance

Coinbase CEO Brian Armstrong has spoken out against the Bank of England's proposed stablecoin caps, warning that they could hinder innovation in digital finance. The proposal would limit individual stablecoin holdings to £20,000 and business holdings to £10 million, with 40% of reserves required to be held in non-interest-bearing central bank accounts.

Armstrong's comments come as the UK's regulatory environment for stablecoins is being finalized, and crypto advocates are expressing concerns that the proposed caps could limit the country's ability to compete globally in digital finance. The proposal has been met with criticism from lawmakers, who have warned that it would 'deter innovation, limit adoption, and push activity overseas.'

Meanwhile, Coinbase has seen significant growth in its stablecoin revenue, earning $1.35 billion in 2025, up from $911 million the previous year. Bloomberg Intelligence estimates that this figure could expand anywhere from two to sevenfold under the U.S. GENIUS Act, which created America's first federal stablecoin framework and permitted crypto companies to offer holders a generous yield on their deposits.

The issue of stablecoin regulation has become increasingly contentious, with the Trump administration pushing for passage of the CLARITY Act, which includes restrictions on interest-bearing stablecoins. Coinbase CEO Armstrong pulled the company's support for the bill just hours before a Senate Banking Committee markup, citing concerns that it would 'materially worsen the current status quo.'