Coinbase CEO Brian Armstrong has voiced strong criticism of the Bank of England's proposed stablecoin limits, warning they could hinder the United Kingdom's standing as a global financial hub. Armstrong described the rules as an "innovation blocker" that may encourage cryptocurrency activity to relocate to other jurisdictions.
The Bank of England's proposal includes caps on individual stablecoin holdings at approximately $26,350 and business holdings at $12.7 million. Additionally, 40% of stablecoin reserves would need to be held in non-interest-bearing central bank accounts. Critics argue these restrictions could limit adoption and reduce market liquidity.
Stablecoins have become a significant revenue stream for Coinbase, generating $1.35 billion in 2025. This revenue is largely derived from its partnership with Circle. In the United States, new legislation is establishing a federal framework for stablecoins, with analysts projecting substantial growth in Coinbase's stablecoin revenue under these new regulations.
The ongoing debate centers on whether regulators should impose strict limits to manage risks or adopt a more cautious approach to oversight. Experts note that stablecoins are evolving beyond pure cryptocurrency, becoming integral to the global financial infrastructure.