The Proposed UK Regulatory Framework For Regulating Stablecoin Issuance

In May 2025, the United Kingdom (UK) Financial Conduct Authority (FCA) published Consultation Paper CP25/14 (CP) setting out a proposed regulatory framework for the issuance of qualifying stablecoins and the custody of qualifying cryptoassets. This initiative forms part of the UK's broader effort to establish a comprehensive regime for cryptoassets following the legislative direction of the UK HM Treasury (the Treasury) and previous FCA discussion papers.

This Advisory describes that part of the CP that addresses the issuance of stablecoins.

Policy Considerations

The Treasury does not intend to bring stablecoins into the UK payments regulation at this time. As such, the CP does not include proposed requirements for firms carrying out payments using qualifying stablecoins.