UK Crypto Firms Urge Stablecoin Strategy to Match US
Thirty crypto executives from firms such as Coinbase, Kraken and VanEck have urged the UK government to adopt a coordinated national stablecoin strategy. In an open letter to Finance Minister Rachel Reeves, they warn that current UK crypto-asset rules classify stablecoins merely as fiat-linked tokens, hindering innovation and adoption.
The group emphasizes that, while the global stablecoin market tops $280 billion—led by USDT and USDC—UK-issued sterling-backed tokens account for just £461,224. They caution that without swift regulatory clarity, the UK risks falling behind the US, which is advancing its framework through the GENIUS Act.
Executives recommend clear reserve standards, audited transparency, consumer protections and integration with payment systems. They call for defined stablecoin categories, aligned rules across the Treasury, Bank of England and FCA, and international coordination to support institutional adoption, cross-border payments and exchange-traded products.
Major banks including Citi and HSBC are already exploring stablecoins and related exchange-traded offerings, while South Korean banks have formed dedicated stablecoin teams. A decisive strategy could strengthen the UK’s digital asset infrastructure, safeguard consumers and maintain market stability.
Neutral
The call for a clear UK stablecoin strategy is likely to enhance regulatory clarity and institutional confidence, supporting broader adoption of stablecoins. However, since stablecoins are designed to maintain a one-to-one peg with fiat, their market price remains stable. In the short term, regulatory proposals may boost demand for stablecoin services and trading volumes, but they will not affect the peg. In the long term, a robust regulatory framework could increase market trust and usage of stablecoins, yet price volatility is inherently limited by design—resulting in a neutral impact on price movements.