Thirty major crypto firms are pushing the UK government to establish a national stablecoin strategy, warning that Britain risks becoming a "rule-taker rather than a rule-maker" as the US advances its digital asset framework. The open letter to Finance Minister Rachel Reeves highlights how the UK's £621,197 pound-pegged stablecoin market pales against the global $280 billion sector dominated by US dollar tokens.
The crypto industry just delivered an ultimatum to Westminster. Thirty of the sector's biggest players, from Coinbase to Kraken, are demanding the UK government establish a comprehensive national stablecoin strategy or risk watching Britain's financial services crown slip to American rivals.
The stakes couldn't be starker. While the global stablecoin market has exploded to over $280 billion according to CoinGecko data, UK pound-pegged stablecoins command a microscopic £461,224 ($621,197) combined market cap. That's a rounding error compared to the US dollar dominance of Tether's USDT and Circle's USDC tokens.
"The U.K. must act now to avoid being a rule-taker rather than a rule-maker in the digital asset era," the industry coalition wrote in their open letter to Finance Minister Rachel Reeves. The message is crystal clear: move fast or get left behind.
The Treasury's response suggests the government is feeling the heat. A spokesperson told CNBC that final crypto legislation is coming "before the end of the year" as part of the government's "Plan for Change." But industry insiders worry that timeline might already be too late.
The frustration centers on Britain's narrow regulatory approach. The UK currently defines stablecoins as "crypto-assets with reference to fiat currency" - a framework the industry argues misses the point entirely. "This definition focuses on form rather than function," the letter states. "This is akin to defining a cheque as paper with reference to currency, when both are essentially negotiable instruments backed by regulated issuers."
