UK Set To Launch New Crypto Staking And Stablecoin Legislation By July, Economic Secretary Bim Afolami Says The UK is making bold moves in the world of cryptocurrency regulation, with plans to introduce
new legislation for
crypto staking and
stablecoins by July, according to Economic Secretary Bim Afolami.
Speaking at the Innovate Finance Global Summit,
Afolami emphasized the government's commitment to bringing crypto activities under regulatory oversight. This includes
exchanges and
custodial services,
which will fall within the regulatory perimeter for the first time. The announcement follows the UK government's release of stablecoin regulation plans last October, aimed at safeguarding customers and addressing potential risks to financial stability.
However, political dynamics could play a role in shaping the future of crypto regulation.
With an election on the horizon, the Conservative-led government's long-term plans may face challenges from a Labour Party
that currently holds a strong lead in polls. Despite potential political headwinds, Chancellor Rishi Sunak's vision of positioning the UK as a crypto hub remains steadfast. The government's determination to act swiftly on stablecoin legislation
was previously highlighted by Afolami. The UK has been proactive in its approach to crypto regulation, passing the Financial Services and Markets Bill last year.
The Payment Service Regulator has made it clear that stablecoin payment systems
can be subject to oversight. Across the pond, US lawmakers are also eyeing stablecoin legislation. Representatives Waters and McHenry are leading efforts to address concerns around these digital assets,
potentially seeking bipartisan support by attaching them to unrelated bills.
