With global rivals moving ahead and domestic rules still years from full rollout, industry groups say the UK risks missing its window to lead in stablecoins.
A coalition of industry groups has launched a campaign urging the UK government and regulators to accelerate work on stablecoin rules, warning that delays could see the country fall behind competing financial centres.
The initiative, led by Innovate Finance and the Digital Pound Foundation, brings together signatories from across the economy, including the International Chambers of Commerce United Kingdom and the Entrepreneurs Network.
Unveiled on today (21 April) at the Innovate Finance Global Summit in London, the campaign calls for greater clarity and urgency from policymakers on stablecoin regulation. It sets out a series of recommendations for key institutions, including the Bank of England (BoE), the Financial Conduct Authority and HM Revenue & Customs, arguing that faster, more coordinated action is needed to support adoption and maintain the UK’s competitiveness.
Among its proposals, the coalition says ministers should push regulators to move more quickly, while the BoE should take a more consistent approach aligned with economic growth objectives. It also calls on the FCA to publish a detailed regulatory roadmap and urges HMRC to treat stablecoins more like fiat currencies for tax purposes rather than as investment assets.
Janine Hirt, CEO at Innovate Finance, said the breadth of support showed the issue extended beyond the crypto sector. “There is widespread support for stablecoin adoption across industries and the benefits this could bring to the UK economy,” she said, adding that policymakers needed to recognise and act on that momentum.
A market under pressure from peers
The campaign lands against a backdrop of rapid regulatory movement elsewhere. The US has advanced both the Digital Asset Market Clarity (CLARITY) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act through Congress, while the EU’s Markets in Crypto-Assets (MiCA) regulation framework is already applying to stablecoin issuers across member states.
The total market capitalisation of all sterling-denominated stablecoins in circulation currently sits at approximately $12m, a figure highlighting how much ground the UK has to make up if it wants GBP-backed digital assets to feature meaningfully in global finance.
The coalition’s vision centres on differentiating the UK regime from other markets, fostering international openness, and supporting the development of GBP-backed stablecoins specifically. Benoit Marzouk, CEO of Tokenised GBP, said: “As global markets look beyond dollars, there is a clear and growing appetite for sterling-backed digital assets and blockchain payment rails.”
Stripe‘s UK Site Lead, Sam Hinton-Smith, framed the opportunity in terms of cross-border payments – an area where the UK already has competitive strengths.
“Stablecoins make global-by-default financial services a real possibility for the first time,” he said. “The UK needs a regulatory framework that allows businesses to realise those benefits.”
Where payments regulation currently stands
The FCA is seeking feedback on draft crypto rules by 3 June 2026, with the consultation covering stablecoin issuance, trading platforms and custody services.
The authorisation gateway is set to open in September 2026, ahead of the full regime going live in October 2027. Sandbox testing, which began in Q1 2026 with four selected firms, is intended to inform the shape of final stablecoin rules later this year.
The FCA and Bank of England share regulatory responsibility for stablecoins, with the Bank’s proposed rules for systemic stablecoins drawing concern from legal analysts who say they could make a commercially viable sterling stablecoin market structurally difficult to achieve.
Any murkiness in this joint regulatory responsibility is what the new campaign is seeking to resolve.
Andrew MacKenzie, Founder and CEO of Agant, said the groundwork has already been laid. “The UK regulators have done a huge amount of work preparing the regulatory regime over the last few years. The time has come to recognise stablecoins’ inherently safe business model and adopt a pro-innovation, principles-based rulebook.”
Philip Salter, Founder of the Entrepreneurs Network concluded: “Britain has the pedigree to play a leading role in the stablecoin revolution, but it cannot simply assume it will,” he said. “A clear, pro-innovation framework for stablecoins would give founders the tools they need to grow.”
