On November 26, 2025, David Geale, Executive Director of Payments and Digital Finance at the Payments Systems Regulator (PSR), articulated the Financial Conduct Authority’s (FCA) strategy for overseeing the burgeoning realm of cryptoassets and stablecoins during a keynote speech at City & Financial Global. Geale emphasized a vision centered on facilitating a trusted, competitive, and innovative market in the UK, revealing that more than 90% of the UK population is familiar with crypto, with approximately seven million people currently owning or having owned cryptoassets, averaging an investment of around £1,800.
Geale outlined the FCA’s objective to create a regulatory environment that fosters both innovation and consumer protection, aspiring to balance these two often conflicting areas. The goal is to establish a “proportionate, sustainable regime” that welcomes businesses while ensuring consumers are well-informed and protected. The FCA is committed to being “open for business,” soliciting direct feedback from industry stakeholders to ensure that regulations promote growth rather than hinder it. This commitment aims to enhance the UK’s competitive standing in the increasingly dynamic landscape of digital finance.
To facilitate this ambition, the FCA is activating various initiatives, including its Regulatory Sandbox, which has now introduced a stablecoin-specific cohort. This initiative allows companies to test UK-issued stablecoins within a controlled environment, supplying the FCA with essential data to inform and refine regulatory policies. A significant focus of this effort involves stablecoin policy sprints scheduled for March, aimed at evaluating various use cases and determining the necessary regulatory frameworks.
The FCA recognizes that the unique characteristics of the crypto market and the complexities associated with decentralized assets necessitate a thoughtful reworking of existing regulations. A mere transfer of traditional financial regulations to the crypto sector, described as a “lift and shift” approach, is deemed insufficient. Legal ambiguities surrounding asset ownership and the associated risks linked to overseas platforms add layers of difficulty that the FCA is committed to navigating through a collaborative and iterative regulatory strategy.
Despite the striking awareness of cryptoassets among the public, the current UK cryptoasset market remains largely unregulated, presenting inherent risks, including volatility and security concerns. The FCA acknowledges the pressing need for a balanced regulatory framework that nurtures innovation while also safeguarding consumers. To that end, extensive consultations on issues such as stablecoin issuance and custody requirements have been conducted, with additional discussions planned for early next year focusing on consumer protections and potential market abuses.
Applications for the new stablecoin-specific cohort of the Regulatory Sandbox are open until January 25, with the first firm having already been accepted to trial a GBP stablecoin designed for payments. The FCA continues to underscore its intention to support innovation and streamline regulatory processes.
Furthermore, upcoming stablecoin policy sprints in March aim to delve deeper into the practical applications of stablecoins across retail and wholesale sectors. The FCA intends to unite different sectors—traditional finance, payment systems, and fintech—to explore how stablecoins can enhance trust, speed, cost efficiency, and interoperability.
In light of the complex nature of the crypto market, the FCA is prudently moving away from a blanket application of existing financial regulations. It acknowledges the challenges posed by decentralization and the international nature of most platforms utilized by UK consumers. The agency is committed to engaging continuously with industry leaders, inviting constructive feedback and alternative proposals in order to cultivate a regulatory framework that champions both innovation and consumer safety.
As the regulatory landscape for cryptoassets and stablecoins continues to develop, the FCA is taking substantial strides to create a framework that is not only equitable and sustainable but also forward-thinking, ensuring the UK remains an attractive hub for digital finance and associated innovations.
