The UK's Financial Conduct Authority (FCA) announced on Wednesday that as part of its digital innovation strategy, it will prioritize the testing of stablecoin payment applications in 2026.
FCA CEO Nikhil Rathi outlined the digital innovation strategy for the coming year in an open letter to UK Prime Minister Keir Starmer, emphasizing that key tasks for 2026 include: finalizing regulations for digital assets and promoting the development of GBP stablecoins.
Nikhil Rathi stated in the press release: "Our reforms help the UK maintain its leading position in the global wholesale financial market, attract international investment, and drive innovation in financial services."
Currently, the FCA is working with the Bank of England to develop a comprehensive regulatory framework for digital assets, covering areas such as stablecoins, trading platforms, lending, staking, and custody, which is expected to be officially implemented in 2026.
Compared to the rapid advancement of cryptocurrency regulations in the United States, the UK adopts a 'phased' cautious regulatory approach, striving to strike a balance between innovation and consumer protection. However, this cautious stance has also drawn criticism. MetaMask's parent company Consensys has stated that the FCA's application of existing financial regulations to the cryptocurrency industry has led the UK to gradually relinquish its status as a 'cryptocurrency hub' to the United States.
Nevertheless, there have been signs of an acceleration in the UK's regulatory pace in recent months. The FCA recently launched the 'regulatory sandbox' program, allowing local stablecoin operators to test payment and financial applications in a controlled environment.
Earlier this year, the UK also passed the (2025 Digital Assets Property Act), officially recognizing digital assets as having legal status as 'property', laying the foundation for the subsequent development of the industry.
Nikhil Rathi wrote in the letter: 'In a rapidly changing technological world, we must focus more on the outcomes of regulation itself, rather than rigid rules.'
He stated that the FCA will further adjust its regulatory approach, implementing differentiated management based on the size and type of enterprises, while accepting that errors are inevitable in the innovation process, but will prioritize addressing the most harmful market behaviors.
"The UK FCA announced the key direction for 2026: 'Promoting the pound stablecoin' is listed as a priority task". This article was first published on (Block客).