Coinbase CEO Warns UK Stablecoin Caps Could Hurt Crypto Innovation and Market Growth

• Coinbase CEO says UK stablecoin limits could hurt innovation and push crypto business overseas.
• Stablecoins are becoming a major revenue source for Coinbase, especially under new U.S. rules.

Brian Armstrong, CEO of Coinbase, has criticized the proposed limit on stablecoins by the Bank of England. He warns that the rules could damage the United Kingdom’s position as a global financial hub. On the social media platform, he said Armstrong said that the proposed rules are an “innovation blocker” that could push crypto activity to other countries.

What is the UK proposing

Last year, the Bank of England suggested capping individual stablecoin holdings at $26,350 and business holdings at $12.7 million, requiring 40% of stablecoin reserves to be held in non-interest-bearing central bank accounts. Some UK lawmakers argue that these restrictions would reduce innovation, limit adoption, and push the crypto business and liquidity to other countries. Armstrong supported a petition from the crypto advocacy group Stand With Crypto UK.

Stablecoin has become an important part of Coinbase’s business. In 2025, Coinbase earned $1.35 billion in stablecoin revenue, and $364 million came from the fourth quarter alone. Most of this revenue comes from its partnership with Circle. 

In the U.S., the new legislation called Genesis created the federal framework for the stablecoin. Bloomberg analysts estimate Coinbase’s stablecoin revenue could grow two to seven times larger under the new rules. Another bill, the Clarity Act, proposed restrictions on stablecoin yields. Armstrong withdrew support for the Clarity Act last month. 

The debate over the stablecoin reflects whether regulators should focus on strict limits to control risks or allow it while managing risk carefully. Experts say that stablecoins are no longer just crypto; instead, they are becoming part of the global financial infrastructure. 

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