FCA Outlines 2026 Growth Measures, Including Support for UK-Issued Stablecoins

The Financial Conduct Authority (FCA) has unveiled a new slate of growth initiatives for 2026, with a major focus on enabling UK-issued stablecoins to deliver quicker and more convenient payment options. As part of this effort, the regulator plans to open its sandbox to allow firms to test stablecoin issuance in a controlled environment, promoting both safe experimentation and forward-looking policymaking.

In a letter addressed to the Prime Minister, the FCA noted that nearly all of the close to 50 growth commitments announced earlier in the year have now been fulfilled, alongside additional measures intended to stimulate economic expansion. According to the regulator, the broader package of reforms aims to help businesses scale, support pathways to home ownership, strengthen capital markets, and expand consumer investment choices.

Looking ahead to next year, the FCA intends to roll out another round of growth-oriented programs designed to improve supervisory efficiency, advance the digitalisation of financial services, increase lending to SMEs, and enhance trade and global competitiveness. Among the plans is an effort to deepen integration between US and UK markets through the Transatlantic Taskforce for Markets of the Future. The FCA is also preparing the groundwork to let certain early-stage firms undertake regulated activity prior to full authorisation, contingent on future legislative approval.

Nikhil Rathi, the FCA’s chief executive, emphasized the broader purpose behind the reforms. “Supporting growth helps consumers, improving their financial resilience and providing more choice. Our reforms help the UK maintain its global competitive edge in our world-leading wholesale markets, attract international investment, and lead on innovation in financial services. We will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.”

Over the course of the year, several major growth reforms have already been implemented. To unlock capital investment and increase liquidity, the FCA introduced PISCES, a new private stock market designed to streamline trading in private shares, alongside finalised rules for a revamped prospectus regime aimed at simplifying capital-raising. In terms of advancing digital innovation, the regulator launched the world’s first Supercharged Sandbox in collaboration with Nvidia to enable secure AI testing, while a new Scale-up Unit established with the Prudential Regulation Authority will guide high-growth, innovative firms through regulatory requirements.

Efforts to reduce regulatory burdens have included cutting back on data requests for 36,000 firms by only asking for essential information and proposing changes to simplify the Senior Managers and Certification Regime to bolster UK competitiveness. The FCA has also worked to make it easier for companies to launch and expand, providing extended pre-application assistance to 158 wholesale, payments, and crypto firms since April, increasing supervisory support for early-stage and fast-growing firms by 50%, and maintaining strong authorisation performance with 99.5% of cases completed on schedule, with even faster timelines planned for next year.

To strengthen exports and attract global investment, the regulator has established a presence in the US and Asia-Pacific as part of its strategy to develop a network of financial services attachés, and is collaborating with the Government to help international financial firms enter the UK market through the Office for Investment: Financial Services.

Reflecting its updated approach to risk, the FCA stated that its mortgage market reforms have been adopted by 85% of lenders, enabling buyers to access roughly £30,000 more on average. Proposed targeted support measures are also meant to promote a stronger retail investment culture and help individuals make informed financial decisions.

In the latest Global Financial Centres Index, London held its position as the world’s second-ranked financial center, narrowing the gap with New York, while Edinburgh and Glasgow also performed well, ranking 32nd and 34th respectively.

By fLEXI tEAM