Coinbase CEO Brian Armstrong warned that the Bank of England’s proposed stablecoin regulations, including caps on individual and business holdings, would stifle innovation and harm the UK’s global competitiveness. Simultaneously, the exchange’s lucrative stablecoin revenue, which reached $1.35 billion in 2025, faces uncertainty in the U.S. as legislative battles over bills like the GENIUS and CLARITY Acts continue, with the latter threatening to restrict yield-sharing arrangements that drive its income.
Coinbase CEO Brian Armstrong stated on Tuesday that the Bank of England‘s proposed stablecoin caps would make the UK an “innovation blocker” in digital finance. He amplified a petition by crypto advocacy group Stand With Crypto UK, which has gathered over 80,000 signatures calling for a pro-innovation regulatory regime.
Last year, the central bank proposed capping individual stablecoin holdings at approximately $26,350 and business holdings at $12.7 million, with additional reserve requirements. British lawmakers had previously warned this approach would deter innovation and push activity overseas. Meanwhile, Coinbase earned $1.35 billion in stablecoin revenue in 2025, a significant portion of its overall income.
Analysts estimate that figure could grow two to sevenfold under the U.S. GENIUS Act, which permits crypto companies to offer yield on deposits. However, the competing CLARITY Act seeks to restrict such yields, directly threatening Coinbase‘s revenue-sharing agreement with Circle for USDC. Armstrong last month withdrew support for that bill, declaring he would “rather have no bill than a bad bill.”
The Trump administration has declared the CLARITY Act a top legislative priority, aiming for passage by spring. Despite the disagreement, White House officials convened another meeting last week with banking representatives and the Crypto Council for Innovation to address the stablecoin yield issue.
