UK Stablecoin Limits Spark Debate Over Regulation and Innovation

Regulatory scrutiny has intensified in recent years, with various countries considering measures to control the growing crypto market. The UK is among those taking steps to regulate stablecoins, which are becoming an increasingly significant component of digital asset transactions.

The Bank of England's proposed limits on individual and business holdings of stablecoins have sparked debate within the industry. These caps would restrict the amount of stablecoins that can be held by individuals and businesses, with some lawmakers arguing that such measures could limit adoption and push crypto activity to other countries.

However, not all agree that stricter regulations are necessary. Coinbase CEO Brian Armstrong has expressed concerns that the proposed limits could harm innovation in the sector, potentially driving businesses overseas. He points out that stablecoins have become a crucial source of revenue for his company, with $1.35 billion earned from stablecoin transactions in 2025 alone.