Coinbase CEO Slams UK's $26,350 Stablecoin Cap

Bank of England is finalizing a framework that would cap individual stablecoin holdings at $26,350 and business holdings at ₱733.34 million ($12.7 million). The proposal also requires 40% of reserves held in non-interest-bearing central bank accounts. Coinbase CEO Brian Armstrong wrote on X that the current rules "will act as an innovation blocker" instead of fostering digital economy growth.

British lawmakers have pushed back, warning the plan would "deter innovation, limit adoption, and push activity overseas." Clearpool COO Steven Wu questioned whether regulation focuses on managing risk properly, rather than limiting scale.

Coinbase has reason to care beyond principle. The exchange earned ₱77.95 billion ($1.35 billion) in stablecoin revenue last year, up from ₱52.6 billion ($911 million) in 2024. That jump came despite the company posting a ₱38.51 billion ($667 million) net loss for 2025. Coinbase is locked in a revenue-sharing agreement with Circle Internet Group for USDC yield, and Bloomberg Intelligence estimates the U.S. GENIUS Act could grow stablecoin revenue by 2x to 7x.

Armstrong's UK complaints come weeks after he torpedoed the CLARITY Act hours before a Senate Banking Committee markup. He said he'd rather have no bill than a bad bill, calling the draft "materially worse than the current status quo." The Trump administration kept Coinbase at the negotiation table despite the fallout and has declared CLARITY Act passage a top legislative priority by spring.

Stand With Crypto UK, a trade advocacy group seeded by Coinbase in 2023, has gathered over 80,000 petition signatures pushing back on the Bank of England proposals, with the petition deadline set for March 3.