UK Goes All-In on Crypto: London Rolls Out Sweeping Regulations, Courts US for Regulatory Alliance
Brace for impact—the UK just dropped its long-awaited crypto rulebook, and it’s packing serious heat. London’s financial overlords are betting big on 2025 as the year digital assets go mainstream (or crash spectacularly trying).
The play? A regulatory blitz that’ll either legitimize crypto or expose its frailties—with a cheeky wink toward transatlantic coordination. Because nothing says ’serious financial innovation’ like begging the US for validation.
One thing’s clear: The suits finally realized blockchain won’t disappear if they ignore it. Now watch banks pretend they loved DeFi all along.
US and UK cooperation
In a bid to address the global nature of digital assets, the UK is strengthening its international regulatory ties, particularly with the United States. Chancellor Reeves recently met with U.S. Treasury Secretary Scott Bessent in Washington, D.C., where they discussed collaboration on digital asset regulation.
The discussions included proposals from U.S. SEC Commissioner Hester Peirce for a transatlantic regulatory sandbox, aimed at allowing firms on both sides of the Atlantic to develop compliant digital securities solutions collaboratively.
This transatlantic cooperation is set to continue through the UK–U.S. Financial Regulatory Working Group, with the next meeting scheduled to further explore ways to support the responsible growth of digital assets.
The UK government’s proactive approach reflects its commitment to making Britain a global hub for fintech and responsible digital asset innovation.
‘Plan for Change’
The draft legislation is part of the government’s broader “Plan for Change” agenda, which aims to drive growth and innovation across the UK’s financial services sector.
Grose said there are two major hurdles the UK must overcome to make crypto competitive: de-banking and regulation. “Fifty percent of crypto firms have been denied a bank account in the UK or been offboarded… You can’t build the future of the financial system here if we don’t have that level playing field.”
The final crypto legislation is expected to be introduced following industry consultation on the draft provisions, with the government planning to publish its first Financial Services Growth and Competitiveness Strategy on July 15.
As the UK positions itself at the forefront of digital asset regulation, these developments signify a concerted effort to balance innovation with consumer protection, ensuring that the crypto industry can thrive within a secure and well-regulated environment.
