FCA seeks public views on stablecoins and crypto custody

The Financial Conduct Authority, United Kingdom’s financial markets regulator, is seeking input from the public on its proposals for stablecoin and crypto custody regulation.

FCA’s press release on the topic on May 28 comes as the United Kingdom looks to finalize its regulatory framework for stablecoins and crypto custody. The regulator is looking to collect feedback from various stakeholders ahead of publishing the final rules in 2026.

Proposals by the FCA come a few weeks after the UK Treasury released its draft legislation on the topics, which it published in April 2025. According to the financial markets watchdog, the public have until July 31, 2025 to submit their feedback.

The regulator has previously highlighted stablecoins as potentially key assets in the payments and settlement sector, with the blockchain-based assets offering benefits such as efficiency and speed. However, it maintains there is need to ensure proper regulation, with issuers obligated to provide clear information on their stablecoin’s reserve backing. 

Support for stablecoins and crypto custody extends the government’s commitment to making the UK a crypto innovation hub, said David Geale, the executive director for payments and digital finance at the FCA.

Regulation will help regulators “strike a balance” in terms of support for the sector and the need to ensure “market integrity and trust,” Geale noted.

The FCA and the Bank of England are working together to bring clear regulations to the UK’s crypto market. In a comment on the latest proposals, Sarah Breeden, deputy governor of the Bank of England, noted:

“We welcome the proposals the FCA have published as part of building the UK’s stablecoin regime. For those stablecoins that expect to operate at systemic scale, the Bank of England will publish a complementary consultation paper later this year, including responding to industry feedback around allowing some return on backing assets.”

The consultation is open for stablecoin issuers looking to expand into the UK, payments providers, crypto custody platforms and industry groups, including law firms. Also expected to provide feedback as auditors, professional advisers within the sector and consumer interest groups.