UK’s FCA Seeks Public Input on Stablecoin and Crypto Custody Regulations

The Financial Conduct Authority (FCA) is soliciting public feedback on proposed regulations for stablecoins and cryptocurrency custody services. The UK regulator aims to finalize rules by 2026, building on draft legislation published by the Treasury in April 2025.

Stablecoins are positioned as potential game-changers for payments and settlements, offering speed and efficiency advantages. However, the FCA emphasizes the need for robust oversight, particularly regarding reserve transparency from issuers.

David Geale, FCA’s Executive Director for Payments and Digital Finance, framed the move as part of Britain’s broader strategy to become a global crypto innovation hub. "Regulation must strike a delicate balance," he noted, "between fostering innovation and maintaining market integrity."

The consultation period remains open until July 31, 2025, with final rules expected to shape the UK’s digital asset landscape for years to come.