- Coinbase CEO Brian Armstrong warned that the Bank of England’s proposed stablecoin caps would make the UK an “innovation blocker” in digital finance.
- Coinbase earned $1.35 billion in stablecoin revenue in 2025, a figure analysts estimate could grow two to sevenfold under permissive U.S. legislation.
- Armstrong recently withdrew support for the U.S. CLARITY Act over yield restrictions, stating he would “rather have no bill than a bad bill.”
- An advocacy petition, amplified by Armstrong, has gathered over 80,000 signatures urging the UK to adopt pro-innovation crypto rules.
Coinbase CEO Brian Armstrong issued a stark warning on Tuesday, declaring that the Bank of England’s proposed stablecoin regulations risk crippling the UK’s competitiveness as a global financial hub. His comments on X amplified a growing industry petition calling for a more flexible regulatory approach.
Last year, the central bank proposed capping individual stablecoin holdings at roughly $26,350 and business holdings at $12.7 million. However, British lawmakers have already warned these limits would push innovation and economic activity overseas, a view Armstrong strongly echoed. Consequently, he framed the current regulatory direction as an outright barrier to progress in the digital economy.
Meanwhile, the policy battle has significant financial stakes for Coinbase. The exchange reported $1.35 billion in stablecoin revenue for 2025, with $364 million coming in the fourth quarter alone. Bloomberg Intelligence analysts estimate this revenue could surge between two and sevenfold under America’s newly passed GENIUS Act.
A parallel conflict is unfolding in Washington over the broader CLARITY Act. This bill includes restrictions on offering yield from stablecoin reserves, a feature critical to Coinbase‘s revenue-sharing agreement for USDC. Armstrong last month torpedoed the legislation hours before a key Senate vote, declaring it “materially worse than the current status quo.”
Despite this fallout, the Trump administration continues to seek a compromise. White House officials convened another meeting last week with banking representatives and the Crypto Council for Innovation to specifically address the stablecoin yield controversy.
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