The U.K.’s Financial Conduct Authority (FCA) identified the development and finalization of rules for regulating pound-pegged stablecoins as a key priority for 2026.
In a report prepared for the U.K. Prime Minister, the FCA emphasizes that stablecoins will become the foundation of the new digital infrastructure. According to the document, the FCA plans to complete the creation of a regulatory framework for stablecoins in 2026, establishing unified standards for issuers, wallet operators, and payment service providers.
The regulator highlights that stablecoins will be a crucial element in modernizing the U.K.’s payments market. A full regulatory framework will enable companies to launch stablecoins pegged to the pound sterling, ensuring settlement stability and integrating digital assets into traditional financial processes. The FCA views stablecoins as a tool to reduce transaction costs and enhance the competitiveness of U.K. FinTech platforms and crypto services.
In 2026, the launch of variable recurring payments (VRP) is also planned, which should increase competition among banks and FinTech companies. Combined with the stablecoin regulatory regime, this will allow the U.K. to build one of the most technologically advanced payment ecosystems in the world, where stablecoins will be available within a controlled and secure regulatory environment.
The FCA notes that rapid technological progress requires a shift from rigid prescriptions to regulation based on outcomes. The report states that a clear government definition of acceptable risk levels will help accelerate innovation and support growth. Stablecoins, in turn, are seen as one of the key tools capable of securing the country’s leadership in developing the global digital financial infrastructure.
The introduction of the stablecoin regulatory regime will be a logical continuation of the 2025 reforms, during which the FCA already allowed retail investors to access crypto exchange-traded notes (ETN), held consultations on digital assets, and shaped its vision for fund tokenization. At the same time, the digital sandbox is testing 31 AI projects and 16 digital securities initiatives, creating a foundation for the systemic integration of tokenized instruments and the digitalization of financial markets.
