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Coinbase CEO Brian Armstrong pushes back on UK stablecoin caps

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Coinbase CEO Brian Armstrong pushes back on UK stablecoin caps

Coinbase CEO Brian Armstrong has warned that proposed stablecoin rules in the United Kingdom risk undermining the country’s competitiveness as a global financial hub, arguing that draft measures could stifle innovation rather than support it.

Summary

  • Brian Armstrong warned that proposed stablecoin caps by the Bank of England could damage the UK’s competitiveness in digital finance.
  • Draft rules reportedly include a £20,000 limit for individuals and £10 million for businesses, prompting concerns the UK could fall behind the $180B global stablecoin market.
  • A pro-crypto petition has surpassed 80,000 signatures and could be debated in Parliament if it reaches 100,000.

Coinbase CEO urges UK to rethink stablecoin caps

In a post on X, Armstrong said stablecoin regulations currently being finalized by the Bank of England include proposals to cap stablecoin holdings for individuals and businesses.

Critics of the framework say the suggested limits around £20,000 for individuals and £10 million for businesses, could act as structural barriers to adoption in a market valued at more than $180 billion globally.

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“The UK has a long history of being a financial hub,” Armstrong wrote, adding that embracing blockchain innovation is critical as other jurisdictions move quickly to establish clearer crypto frameworks.

He urged UK residents to support a petition organized by Stand With Crypto UK, which has gathered more than 80,000 signatures. Under parliamentary rules, petitions crossing 100,000 signatures are considered for debate in Parliament.

The comments sparked debate online. Some users argued the U.S. should first resolve its own regulatory uncertainty, pointing to the pending Clarity Act in Congress. Others said regulation should manage systemic risk without suppressing innovation, calling for proportional frameworks that allow stablecoins to scale responsibly.

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The debate highlights mounting global competition over stablecoin policy, as lawmakers in the U.S. and European Union push forward with new frameworks. For London, long seen as a premier financial center, the final shape of stablecoin rules may determine whether it remains at the forefront of digital asset finance or risks ceding ground to more agile jurisdictions.

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Crypto World

WLFI to Offer More Incentives for Token Holders Who Use USD1

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WLFI to Offer More Incentives for Token Holders Who Use USD1

Trump family-backed crypto venture World Liberty Financial (WLFI) has proposed new measures to boost participation in governance through a staking system and incentivize the use of its stablecoin USD1.

In its latest proposal on Wednesday, the team suggested governance votes should require holders to stake their tokens for at least 180 days to ensure “voting power is held by participants with long-term alignment to the protocol,” instead of “short-term holders or speculators.”

Stakers would earn an annual percentage rate of 2% provided they participate in at least two governance votes during the lock-up period. Governance power would be based on the amount staked and the time left in the lock-up. Users with locked tokens can continue to vote as usual.

Source: World Liberty Financial

Incentives for USD1 usage on the table too 

WLFI has been trying to increase USD1 adoption since it launched through rewards programs and partnerships with institutional platforms and other protocols. 

As part of the staking system, the WLFI team said users who stake their tokens would also gain “additional benefits for USD1 usage,” with USD1 deposits made on the trading and lending platform WLFI Markets attracting unspecified “incentives” from the DeFi protocol Dolomite.

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At the same time, “Nodes,” holders with at least 10 million WLFI tokens, will gain access to providers who offer conversion of other stablecoins like USDC (USDC) and USDt (USDT) into USD1 at a 1:1 rate and can provide an off-ramp directly to fiat. 

“Super Nodes,” or holders with more than 50 million WLFI tokens, will also have access to the feature.

World Liberty Financial is offering incentives for token holders to stake and participate in governance decisions. Source: World Liberty Financial 

For the vote to be valid, the WLFI team has set the bar at one billion voting tokens participating, with a majority voting in favor required for it to pass. CoinGecko lists over 27 billion WLFI tokens in circulation.

If approved, the rollout will be in three phases: starting with staking rewards and USD1 deposit incentives, followed by the 1:1 conversion feature and lastly partnership access and a revenue-sharing framework for “Super Nodes.”

Related: Trump crypto company says ‘coordinated attack‘ on stablecoin failed

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Stablecoin market dominated by USDC and USDT

The total market capitalization for stablecoins is over $309 billion as of Thursday, according to DeFi aggregator DefiLlama. USDT has the largest market cap with over $183 billion and a market dominance of 59%.

Circle’s USDC is the second-largest stablecoin by market cap, with $75 billion. WLFI’s USD1 is the fifth-largest stablecoin with a $4.7 billion market cap.

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