🌎 UK to Unveil Crypto and Stablecoin Regulations in 2025

The U.K. government plans to unveil draft regulations for the crypto and stablecoin markets in early 2025. Prime Minister Keir Starmer’s administration aims to establish a regulatory framework for overseeing the crypto industry, aligning with developments in the European Union and the United States, according to Tulip Siddiq, Secretary to the Treasury. Siddiq outlined the plans during a meeting in London.

Regulatory Framework for Crypto and Stablecoins

The proposed framework will regulate stablecoins and crypto staking services under a single, comprehensive set of rules for crypto assets. Originally, the British government’s plans were to unveil the stablecoin and crypto regulation framework by December 2024. This move is part of a broader strategy to counter the potential impact of a positive or pro-crypto stance by the incoming Donald Trump administration in the United States.

Alignment with EU and U.S. Developments

U.K. regulators are also considering the broader EU market, whose Markets in Crypto-Assets (MiCA) rules come into effect at the end of the year. The Bank of England introduced its stablecoin regulatory plan in November of the previous year. According to Bloomberg, the U.K. is delaying the expected legislation after the change in government. However, instead of two drafts focused on stablecoins and crypto staking, the upcoming rollout will be for a “single overarching regime.”

U.S. Pro-Crypto Developments

The U.S. is rapidly moving towards a positive stance on crypto developments following Trump’s election win on November 5. Indicators of this shift include the move to appoint a White House ‘crypto czar’ and SEC Chair Gary Gensler’s announcement that he will step down in January.