FCA seeks feedback on UK stablecoin regulation draft
Regulator demands greater resilience in the crypto sector
The UK Financial Conduct Authority (FCA) is accepting public comments on a draft regulation concerning stablecoins and crypto custody.
On May 28, the FCA invited stablecoin issuers and other stakeholders to provide input on the proposed framework published by the UK Treasury in April. The draft covers the issuance of stablecoins, crypto asset custody, and the financial resilience of crypto companies. The public consultation will remain open until July 31 and marks the final stage before the law is enacted.
Regulator demands greater resilience in the crypto sector
The FCA acknowledges the potential of blockchain to improve payment and settlement systems, and the benefits of stablecoins for cross-border transactions. The proposed rules aim to ensure that regulated stablecoins maintain their value and that customers receive transparent information on how reserve assets are managed.
“At the FCA, we have long supported innovation that benefits consumers and markets. Today, crypto in the UK is largely unregulated. We want to strike a balance that supports innovation while upholding market integrity and trust,” said David Geale, Director of Payments and Digital Assets at the FCA.
For companies offering crypto custody services, the FCA proposes that they ensure effective asset protection and accessibility at all times. The proposals also aim to reduce the risk and impact of potential insolvencies among regulated stablecoin issuers and custodians.
The final rules are expected to be published and adopted in 2026.
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