UK Financial Conduct Authority Says Supporting Stablecoins ‘a Priority’ for 2026

The UK’s Financial Conduct Authority (FCA) says supporting and testing safe stablecoin payments will be a priority in 2026. The regulatory watchdog is opening its regulatory sandbox to firms looking to launch stablecoin products as part of a slate of planned market-friendly growth initiatives.

According to a Dec. 10 press release, the FCA will launch several ambitious growth initiatives focused on accelerating approval processes, the digitalization of financial services, and boosting trade and international competitiveness.

As part of these measures, FCA chief executive Nikhil Rathi has pledged that the authority will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.

Stablecoins as a Digital Asset Stabilizer

In an accompanying letter to the Prime Minister, Rathi promised to make sweeping changes to the financial sector including the finalization of digital assets rules and support for UK-issued sterling stablecoins in 2026.

The FCA will also institute several reform rules and regulatory changes in the traditional finance sector that could have crossover impact for crypto and other digital assets.

It will update the rules for venture capital and alternative investment fund managers and consult on the pension charge cap to ensure consumers don’t carry higher performance fees, oversee the launch of variable recurring payments to give digital asset financing broader entryway, set a delivery plan for open finance, prioritizing SME lending, and fast-track application services for startups and IPOs.

As Coinspeaker reported back in May, the FCA had previously sought public input after outlining several regulations for organizations seeking to operate and offer stablecoin services and products in the UK. At the time, Bank of England, the UK’s central bank, offered its full support for the FCA’s stablecoin initiatives.

In 2026, however, it’s clear that the FCA is focused on growing its global digital assets footprint and transforming its technological landscape. In their letter to the president, for example, Rathi wrote that the FCA was actively supporting 31 firms AI use cases and that the authority would enable the UK’s asset management sector to tokenize their funds.

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