UK financial authority to prioritize stablecoin payments in 2026

The UK's Financial Conduct Authority (FCA) announced that enabling local firms to experiment with stablecoin payments will be a top priority for 2026. FCA Chief Executive Nikhil Rathi outlined this goal in a letter to the Prime Minister, emphasizing the finalization of digital asset regulations and the advancement of UK-issued sterling stablecoins. The FCA is collaborating with the Bank of England to develop comprehensive regulations for stablecoins, trading platforms, lending, staking, and custody, expected to be implemented in 2026. While the UK has taken a phased regulatory approach, which some critics argue has cost it its status as a crypto hub compared to the U.S., regulatory momentum is increasing, evidenced by a new regulatory sandbox for stablecoin issuers and the recent passage of the Property (Digital Assets etc.) Act 2025, which legally recognizes digital assets as property.

(Source：The Block)