The UK’s Financial Conduct Authority plans to finalize crypto rules, advance sterling stablecoin regulation, and enable fund tokenisation in 2026 as part of a broader push to accelerate digital innovation.
UK Regulator to Finalize Crypto Rules, Advance Stablecoin Framework in 2026
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A Clear Path for Crypto and Stablecoins
The Financial Conduct Authority (FCA) is set to significantly advance the regulation of the UK’s crypto sector in 2026, with plans to finalize key digital asset rules and enable the tokenisation of investment funds. The regulatory roadmap for the year ahead was outlined in a letter dated Dec. 9, 2025, from FCA Chief Executive Nikhil Rathi to the Prime Minister, detailing the watchdog’s “approach to growth”.
A key priority for 2026 is accelerating digital innovation to enhance productivity across the financial sector. Specifically regarding cryptocurrency, the FCA confirmed it will finalize digital assets rules and actively progress UK-issued sterling stablecoins next year. This follows up on a proportionate regime for digital assets consulted upon in 2025 and the launch of a stablecoin-specific cohort in the regulatory sandbox.
In a major development for the asset management industry, the FCA intends to leverage digital technology to boost efficiency and competition. The FCA stated it “will also enable our world-leading asset management sector to tokenise their funds”. Fund tokenisation involves representing fund ownership as digital tokens on a blockchain, which is expected to drive efficiencies and competition.
The 2026 plans follow a year of increasing support for digital innovation. Since April 2025, the FCA has seen significant uptake, with 158 wholesale, crypto, and payments firms applying for this support. Crucially, the FCA has enhanced this process by providing more certainty faster, informing over 200 firms that it was “minded to approve” their applications.
Read more: UK Financial Watchdog Proposes Lifting Ban on Crypto ETNs for Retail Investors
This “minded to approve” signal is a significant step that allows promising start-ups to secure funding with greater confidence that they will ultimately achieve regulated status. The support for these high-growth sectors is part of the FCA’s strategy to accelerate digital innovation and improve efficiency in the authorization process.
Furthermore, the FCA is actively supporting firms seeking to digitise, noting that 31 firms are already testing Artificial Intelligence (AI) use cases with them. The FCA emphasized that rapid technological change requires a focus on outcomes, not prescriptive rules, as it moves to further tailor its supervisory approach to firms’ size and type.
FAQ 💡
- What is the FCA planning for 2026? The UK’s FCA will finalize digital asset rules and advance sterling stablecoin regulation in 2026.
- How will fund tokenisation affect global investors? Tokenised UK investment funds aim to boost efficiency and competition by using blockchain-based ownership.
- Why does the FCA’s “minded to approve” signal matter? It gives start‑ups across the UK and abroad greater confidence to secure funding while awaiting full authorization.
- How is the FCA supporting digital innovation? The regulator is accelerating approvals and working with firms testing AI, crypto, and payments technologies.
