The UK's Financial Conduct Authority (FCA) is set to finalize its digital asset regulations and advance a framework for sterling stablecoins by 2026. This initiative aims to align with the EU's Markets in Crypto-Assets Regulation. Additionally, the FCA plans to facilitate the tokenization of investment funds, building on consultations from 2025. The regulator will also progress a stablecoin-specific cohort within its sandbox environment. Since April 2025, 158 firms have applied for support, with over 200 receiving indications of potential approval. The FCA is concurrently enhancing its frameworks to counter the financing of terrorism.