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The UK exempts stable overseas issuers from complying with the new cryptocurrency rules as the minister promises close cooperation with the US in regulating new global markets of digital assets.
The proposal set by Prime Minister Rachel Reeves on Tuesday is part of the UK’s first attempt to write rules on crypto assets, reflecting the UK’s attempt to develop a technology partnership with the US.
Reeves discussed last week a closer technical cooperation with US counterpart Scott Bescent in Washington and a move to secure a broader trade contract aimed at reducing tariffs. “The talks continue,” a British official said.
The new rules, the UK’s leading financial regulator, cover market practices such as exchanges and brokers, crypto financing and new enforcement authority of the Financial Conduct.
The push to regulate UK crypto assets is given new driving forces as President Donald Trump returns to the White House with a pledge to end regulatory crackdowns and provide an industry-friendly approach to turning America into “world crypto capital.”
In a speech to London’s Innovate Finance Global Summit, Reeves said that the “robust rules” on Crypto “will increase investors’ trust, support fintech growth, and protect people across the UK.”
“Today’s announcement sends a clear signal. The UK is open for business, but fraud, abuse and instability are closed,” she added.
The UK crypto sector may welcome the bill. I’m dissatisfied with rejecting almost nine of the 9 of the 10 most recent applications from Crypto providers and registering to comply with the Money Laundering Anti-Money Laundering Rules.
Laura Navaratnam, a policy lead from the UK trade group Crypto Council for Innovation, said the announcement marked “a big milestone in Stablecoins and other crypto assets more commonly in the UK.”
“Currently, the focus has shifted to regulatory authorities as the FCA is expected to consult with FIAT-backed stubcoin regulations.”
Reeves’ allies said last week that Prime Minister Becent and the Treasury Secretary “we spoke not only about trade, but also about strengthening UK economic ties beyond tariffs, including technology and financial services.” The person added: “This is the first result of it.”
Washington’s British Ambassador, Lord Mandelson, is pushing for the UK’s US technology partnership to be agreed along with the trade agreement to reduce tariffs on both sides of the Atlantic.
The envoy held a digital asset event at his residence last week, coinciding with Reeves’ visit to Washington for the IMF and World Bank spring meeting.
Nick Price, a partner at the London law firm Osborne Clark, said the UK’s approach “appears to be more consistent with the US and brings crypto assets to existing regulatory boundaries rather than developing custom-built laws for them.”
Plans that are under discussion for a month do not need to be approved in the UK unless the publisher is based in the UK.
Tokens, which have become one of the most active corners of the global crypto market, are designed to maintain stable value for sovereign currencies such as the US dollar, but sit outside the regulated banking system.
Approximately $240 billion in stubcoins, issued by El Salvador Tether and US circles, are in circulation.
Last week’s Reeves discussion with Bessent featured “ideas of how to allow greater collaboration on digital securities between the UK and the US.”
US lawmakers are expected to pass the Stablecoin rules this year to open doors for tech groups in Big Wall Street and Silicon Valley to enter the market, but will stop forcing foreign publishers to be established in the US.
The UK’s planned stubcoin restrictions contrast with the EU’s more stringent approach, which came into effect in December.
Brussels is demanding “important” stable coins to meet strict rules regarding liquidity and reserves, as well as recovery and redemption plans.
