The UK government is aiming to expedite the approval of new legislation concerning stablecoins and staking within the next six months, as announced by Bim Afolami, Economic Secretary to the Treasury, during an industry event reported by Bloomberg.
Afolami emphasized the government’s commitment to swift legislation on stablecoins and staking, highlighting the urgency of the matter with a target of enacting regulations within the next half-year.
Tom Duff Gordon of Coinbase also anticipates new rules in the UK that might exempt staking from being classified as a collective investment, Bloomberg reported.
The UK has adopted a phased regulatory framework for crypto, with a two-pronged approach. In October, the Treasury introduced definitive proposals for overseeing fiat-backed stablecoins, focusing specifically on their use in payments.
This initial phase of regulation concentrates on stablecoins, viewed by the government as potentially influential in mainstream finance, while preparing for a broader regulatory framework for the entire crypto asset sector outlined in separate policy documents.
Regulation for fiat-backed stablecoins will encompass their usage in payments and UK-based issuance/storage. To oversee certain fiat-backed stablecoins, a trio of regulatory bodies—the Bank of England, Financial Conduct Authority, and Payment Systems Regulator—will collaborate under the proposed regulations.
These proposals followed a consultation in February regarding the forthcoming financial services regulations for crypto assets in the UK, garnering a robust response with insightful feedback from various companies and stakeholders.
While some applaud the recent crypto regulation proposals in the UK as aligning with the vision of fostering a national crypto hub set forth by Rishi Sunak in 2022, others maintain cautious optimism.
Treasury Minister Andrew Griffith previously expressed satisfaction with the stablecoin framework, considering it a “step in the right direction” after months of public anticipation.
