TL;DR:
Coinbase openly criticized the stablecoin regulatory framework that the Bank of England is in the process of finalizing, warning that the proposed restrictions could jeopardize up to $1.35 billion of its business and erode the United Kingdom’s position as a global hub for digital finance.
The British regulator’s proposal sets a cap of £20,000 on stablecoin holdings for individuals and £10 million for companies. It also requires issuers to hold the majority of their reserves in short-term government debt and central bank deposits. Bank of England authorities argue that these measures aim to reduce systemic risks and protect users.
Brian Armstrong, Coinbase’s chief executive officer, responded through his account on X with a pointed message. He described the restrictions as “innovation blockers” and warned that rather than managing risk, the caps will only succeed in displacing capital, developers, and users toward more receptive jurisdictions. The Coinbase CEO also called on United Kingdom citizens to sign the petition driven by Stand With Crypto UK to promote a pro-innovation strategy in blockchain and stablecoins.
Beyond Coinbase, legislators within the British Parliament itself had expressed similar concerns in the past, noting that excessively restrictive frameworks drain liquidity from local markets and discourage technology companies from establishing operations in the country.
On the numbers, Coinbase generated $1.35 billion in stablecoin-related revenue during 2025, up from the $911 million recorded in 2024. In the fourth quarter alone, the company added another $364 million from this market, even as it reported a net loss for that period. Stablecoins consolidated as the company’s most stable revenue stream, and Coinbase is using them as leverage to expand into the market for tokenized equities and 24/7 operations.
The debates in the United Kingdom stand in sharp contrast to the situation unfolding in North America. New United States rules allow stablecoins to offer yields directly to users, which analysts estimate could multiply Coinbase’s revenue in that market by two to seven times. While Washington opens its doors to blockchain, London locks itself in, and the market, historically, moves toward where it finds more freedom.
