Overview
- The government introduced legislation with only minor changes from the draft to bring crypto firms under existing financial regulation.
- Regulators plan to finalize detailed requirements by the end of 2026 covering trading platforms, custody, issuance and market conduct.
- Britain’s approach adapts domestic financial laws and tracks closer to U.S. policy than the EU’s MiCA regime, according to officials.
- Stablecoin policy remains a focal point, with a Bank of England proposal for at least 40% unremunerated reserves and reported holding caps drawing competitiveness concerns.
- Industry response is divided as Gemini welcomes clarity, legal experts flag technical flaws in the draft, and some advocates criticize the long runway while regulators keep high‑risk warnings in place and courts now recognize certain digital assets as property.