FCA Solicits Public Feedback on Stablecoins and Crypto Custody Solutions

The Financial Conduct Authority (FCA), the regulator for financial markets in the United Kingdom, is inviting public input on its proposed regulations concerning stablecoins and crypto custody.

The FCA’s press release issued on May 28 signifies the UK’s move to finalize its regulatory framework for stablecoins and crypto custody. The authority is eager to gather feedback from a range of stakeholders before the final rules are published in 2026.

This initiative follows the release of the UK’s Treasury draft legislation on the same subjects in April 2025. According to the FCA, the public has until July 31, 2025, to share their insights.

The regulator has previously identified stablecoins as potentially crucial assets in the payments and settlement landscape, emphasizing the advantages they offer, such as increased efficiency and speed. Nevertheless, the FCA stresses the necessity for effective regulation, requiring issuers to provide transparent information regarding their stablecoin’s reserve backing.

David Geale, the executive director for payments and digital finance at the FCA, mentioned that support for stablecoins and crypto custody aligns with the government’s ambition to position the UK as a hub for crypto innovation.

He highlighted that regulation will aid authorities in “striking a balance” between fostering sector support and ensuring “market integrity and trust.”

The FCA is collaborating with the Bank of England to establish clear rules for the UK’s crypto market. Commenting on the latest proposals, Sarah Breeden, deputy governor of the Bank of England, remarked:

“We commend the FCA for the proposals they’ve released to shape the UK’s stablecoin regime. For stablecoins anticipated to operate at a systemic scale, the Bank of England will publish a complementary consultation paper later this year, which will address industry feedback regarding potential returns on backing assets.”

The consultation is open to stablecoin issuers looking to enter the UK market, payment providers, crypto custody platforms, and various industry groups, including law firms. Additionally, feedback is anticipated from auditors, professional advisors in the sector, and consumer interest organizations.

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