Coinbase CEO Pushes Back on UK Stablecoin Caps as Token Profits Surge
Coinbase CEO Brian Armstrong warned that the Bank of England’s proposed stablecoin holding caps and reserve requirements could undermine the UK’s competitiveness as a global financial center and stifle digital innovation. The UK is considering individual and business stablecoin caps, with lawmakers cautioning that these measures could drive business and innovation overseas. Coinbase, whose stablecoin revenue rose to $1.35 billion in 2025, faces regulatory uncertainties on both sides of the Atlantic. In the U.S., pending legislation such as the GENIUS Act and the CLARITY Act could dramatically impact stablecoin business models and exchange-derived yields. U.S. banking lobbyists have pushed yield restrictions to protect traditional deposits, prompting resistance from crypto firms. Armstrong withdrew Coinbase’s support for the CLARITY Act over new restrictions, but remains involved in ongoing negotiations with lawmakers and regulators. Industry representatives argue that stablecoins could become fundamental to financial infrastructure, and excessive restrictions may limit UK and U.S. participation and innovation in the sector.
