Crypto News: UK Releases Draft Bitcoin, Crypto Regulation

The latest crypto news centers around the United Kingdom, which has taken a clear step forward in its bid to regulate the sector.

A newly released draft law explains how digital asset firms are expected to operate in the United Kingdom.

It aims to encourage innovation in the sector, strengthen consumer protection, and help the country stay competitive globally.

New Rules to Guide Crypto Trading and Protect Investors

Notably, the draft legislation aims to impose the same standards on digital asset firms in the country as traditional financial institutions.

Per the update, this includes exchanges, custodians, and stablecoin issuers.

It is worth noting that crypto trading firms must now meet strict requirements on transparency, customer protection, and operational strength.

According to the update, the move comes as the number of UK adults owning crypto has grown to 12%, up from just 4% in 2021.

It was stated that this sharp increase has raised concerns about fraud, scams, and unclear practices.

The government hopes that by setting clear standards, it will increase investors’ confidence and protect the public from harmful actors.

It is essential to add that the Chancellor of the Exchequer, Rachel Reeves, announced the new framework at a fintech summit in London.

After further discussion with industry players, she also confirmed that final legislation will be introduced soon.

The proposed law is part of the UK’s broader Plan for Change. It seeks to boost growth by attracting investment and supporting fintech innovation.

Officials say Britain is ready to become a global leader in the digital finance space.

Crypto News: The US Push on Stablecoin Regulation

While the United Kingdom is moving quickly, progress in the United States has been less clear.

Currently, there are no explicit regulations on stablecoins or crypto in the United States.

However, Congress is working on creating a framework at the behest of the President Donald Trump administration.

Meanwhile, current crypto news update shows the Senate Banking Committee has moved forward with its stablecoin bill, the Genius Act.

While the House Financial Services Committee has done the same with its version, the Stable Act.

Final votes are expected soon, which could determine how these assets are regulated and who can issue them.

Reports show that Reeves met with the US Treasury Secretary, Scott Bessent, to discuss areas where both countries can align.

One proposal is a transatlantic sandbox for digital securities, an idea supported by US SEC Commissioner Hester Peirce.

This would allow UK and US firms to test and grow digital asset products under joint rules.

However, the regulatory gap may continue to grow. That is until the US takes firm steps on stablecoin laws and digital asset classification.

Can the UK and US Catch Up With the EU’s MiCA?

In another crypto news update, the European Union has progressed with its Markets in Crypto-Assets (MiCA) framework.

This regulation has been in the works since December last year and sets clear rules for crypto operations across EU countries.

It was developed to protect consumers, maintain market integrity, and promote the growth of crypto and blockchain technology.

The UK’s new draft law puts it in a stronger position to compete in the digital finance sector.

If finalized soon, it could help attract key players to the UK and remove the confusion that has surrounded the crypto trading sector.

While the US is still catching up and the EU is moving ahead, it remains to be seen whether co-operation between the UK and the US can match the progress in the EU.