The U.K. government is set to reveal its plans for regulating the crypto industry in the coming weeks, according to CNBC.
- Although details are still being finalized, the regulatory regime will focus heavily on stablecoins, which are cryptocurrencies fixed to the value of other assets, CNBC reported Sunday citing unnamed sources.
- The U.K. Treasury Department has discussed the upcoming regulatory package with multiple crypto firms including Gemini, the issuer of stablecoin Gemini dollar (GUSD), which is pegged to the U.S. dollar, according to the report.
- The European Union’s landmark regulatory framework for crypto assets, currently moving through the bloc’s complex legislative process, also has a heavy emphasis on oversight into stablecoins.
- The U.S. Congress is also working on specific regulations for stablecoins over potential risks these private cryptocurrencies may pose to financial stability.
- On Thursday, U.K. regulators published a report voicing concerns about how crypto adoption poses financial risks.
- Rishi Sunak, Britain’s finance minister, is set to announce the U.K. government’s regulatory plans for crypto in the coming weeks, according to the report.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.