After industry consultations, the FCA trimmed the planned capital floor for stablecoin issuers, signaling a softer approach to crypto rules while promising stronger oversight where risks are systemic.
The British financial regulator said on Tuesday it would reduce planned capital requirements for stablecoin issuers after industry pressure, while presenting regulatory norms that would for the first time fully cover the crypto-asset sector under its jurisdiction.
Policies around the world are under pressure to strike a balance between protecting consumers and competitiveness, especially in light of crypto-friendly policies developed by the administration of U.S. President Donald Trump.
“clear rules of the road” and “eliminate dubious actors from the market”
– Rachel Rivers
After a series of consultations with the industry, the regulator said it would reduce the key capital requirement that obliged firms to hold funds at a level of 1% of the total value of the stablecoins they issue, compared with the previously proposed 2%.
The regulator said the changes were aimed at creating a “proportionate” regime that would enable firms to compete internationally.
Formally, the regulator noted that the changes are aimed at creating a proportionate regime that would allow companies to compete on the world stage.
Officials also noted that the regulator initially set too high a threshold for stablecoins.
According to the statement, the final rules were developed based on data from the industry.
More relaxations for other requirements
The regulator also eased other earlier proposals, notably giving firms more time to reimburse customers who settle in stablecoins and removing some requirements for public disclosure.
For crypto exchanges the FCA said it would tailor the proposed crypto-asset trading rules to better reflect how crypto markets work.
The new regulatory regime will take effect in October 2027.
Most stablecoins will be subject to FCA oversight, while those considered systemic and widely used for payments will be regulated under a stricter regime by the Bank of England.
The FCA’s rules for issuers apply only to stablecoins denominated in pounds sterling, which account for a small share of the global market.
Benoit Marzouk, CEO and co-founder of BCP Technologies, which issues the stablecoin tGBP, said that even the 1% requirement remained a challenge, noting that in the United States a single capital requirement is likely to be introduced.