The U.K. Government Plans to Unveil Draft Regulations for the Crypto and Stablecoin Markets in Early 2025

The U.K. government plans to unveil draft regulations for the crypto and stablecoin markets in early 2025, Bloomberg has reported.

The United Kingdom government is preparing to unveil draft regulations for the cryptocurrency and stablecoin markets in early 2025, according to a report by Bloomberg.

The administration of Prime Minister Keir Starmer is aiming to establish a comprehensive regulatory framework for the oversight of the crypto industry, aligning with developments in the European Union and the United States, as stated by Tulip Siddiq, Secretary to the Treasury. Siddiq disclosed these plans during a meeting held in London.

The proposed framework will reportedly encompass regulations for both stablecoins and crypto staking services, bringing them under a unified set of rules for crypto assets.

Initially, the British government's plans involved the unveiling of the stablecoin and crypto regulation framework by December 2024, a move that was influenced by the country's efforts to counter the potential impact of a positive or pro-crypto stance by the incoming Donald Trump administration.

U.K regulators are also keeping an eye on the broader EU market, where the Markets in Crypto-Assets (MiCA) rules are set to come into effect at the end of the year.

The Bank of England introduced its own stablecoin regulatory plan in November last year.

According to Bloomberg, the U.K. is delaying the expected legislation following the change in government. However, instead of two drafts focused on stablecoins and crypto staking, the upcoming rollout will be for a “single overarching regime.”

The U.S. has been shifting positive in terms of pro-crypto developments at a rapid pace since Trump’s election win on Nov. 5. Pointers to this direction include the move to have a White House ‘crypto czar’ and SEC Chair Gary Gensler’s announcement that he will step down in January.