- Dozens of UK trade associations, including the UK Cryptoassets Business Council, TheCityUK, and the Association of British Insurers, have jointly written a letter to UK Business Secretary Peter Kyle
- The main concern is that if digital assets are excluded, the UK risks being left behind in shaping the rules and standards of global finance and innovation
- Even before the letter, there has been growing pressure from the crypto industry for the UK to create a clear plan for stablecoins
More than a dozen UK trade associations, including the UK Cryptoassets Business Council, TheCityUK, and the Association of British Insurers, have jointly written a letter to UK Business Secretary Peter Kyle (and Economic Secretary Lucy Rigby) urging that blockchain, stablecoins, and tokenization be made central components of the upcoming UK-US Tech Bridge agreement.
Why Trade Groups Want Blockchain in the Deal
Their concern is that if digital assets are excluded, the UK risks being left behind in shaping the rules and standards of global finance and innovation. Countries in Asia and the Middle East are already advancing regulatory frameworks for digital assets.
The letter explicitly mentions that stablecoins and asset tokenization are “strategically important areas for both economies.” The letter goes on stating: “Without coordinated action, UK businesses may face a fragmented regulatory environment, reduced access to transatlantic markets, and increased competitive pressures.”
Related: Bitpanda Avoids London Listing as UK Crypto Regulations Fail to Attract Exchanges
The threat of falling behind
The UK government has already committed (announced in July) to enabling Distributed Ledger Technology (DLT) and tokenization in its Wholesale Markets Strategy, and is exploring how stablecoins can be utilized in its Digital Securities Sandbox.
Before that, a preliminary draft of a statutory instrument was released in April 2025, which sought to establish a regulatory framework for the UK. This included defining the criteria for “qualifying stablecoins,” creating new classifications for digital assets, and outlining proposed compliance obligations for issuers of stablecoins, trading venues, and other entities operating in the market.
Draft Stablecoin Rules Still Leave a Gap
Generally speaking, even before the letter, there has been a growing pressure from the crypto industry for the UK to create a clear plan for stablecoins.
Many companies have pointed out that the rules are not keeping up, and the fact that there are so few pound-backed stablecoins available shows that regulators have been too slow to act.
What the UK–US Tech Bridge Means for Digital Assets
The UK-US Tech Bridge could have big implications for crypto and finance in the UK. If the UK isn’t part of deciding standards around tokenization, stablecoins, and blockchain interoperability, it may become a rule-taker rather than a rule-maker in this domain.
If such a scenario happens, it can affect which companies set up in the UK, where financial infrastructure gets built, and who benefits from growth in digital assets.
Related: UK’s FCA to End Retail Ban on Crypto ETNs Beginning October 8
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