GBBC Submits Responses to UK FCA CP25/14 – Stablecoin Issuance and Cryptoasset Custody

GBBC has submitted its formal response to the FCA’s CP25/14 consultation on the proposed regulatory framework for fiat-backed stablecoins in the UK.

While GBBC supports the FCA’s aims of safeguarding, redemption certainty, and consumer protection, we raise concerns that the current proposals may be overly rigid, difficult to operationalise, and misaligned with international norms.

Our recommendations include:

🔹 Replacing the proposed statutory trust with a flexible, outcome-based safeguarding model consistent with EMRs and CASS 6. 🔹Introducing legal clarity on redemption rules, including clear distinctions between redemptions and buybacks. 🔹Permitting a range of safeguarding structures (trusts, nominees, orphans) depending on jurisdictional and legal context. 🔹Ensuring cryptoasset forks are addressed explicitly in the rules for both issuers and custodians. 🔹Requiring use of standard identifiers (e.g. Digital Token Identifier) across disclosures and recordkeeping. 🔹Clarifying how custodian liability should be defined, and avoiding de facto insurance obligations. 🔹Promoting coherence between FCA and Bank of England oversight regimes.

GBBC supports the classification of stablecoins as mass market investments with appropriate guardrails and calls for a regulatory approach that is both credible and innovation-friendly.

Download our full submission here.