UK Seeks US-Inspired Crypto-Friendly Policies to Boost Innovation

The United Kingdom and United States are advancing plans to enhance collaboration on digital assets, signaling a strategic move towards fostering innovation within the crypto and blockchain sectors. Britain is reportedly looking to adopt a more receptive stance towards cryptocurrencies, inspired partly by the approach taken by the previous U.S. administration, to create a more conducive environment for growth and development.

Discussions between UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent took place on Tuesday, focusing on improving regulatory coordination and fostering cross-border cooperation on matters related to cryptocurrency. These conversations also included participation from representatives of leading crypto firms such as Coinbase, Circle Internet Group, and Ripple, as well as senior executives from major financial institutions including Bank of America, Barclays, and Citigroup.

The initiative was reportedly finalized in a last-minute decision after cryptocurrency advocacy groups actively urged the UK government to shift towards a more open stance towards the industry. Critics argue that the UK’s cautious regulatory approach has hindered innovation compared to other jurisdictions, emphasizing the need for clearer policies surrounding digital assets.

Focus on Stablecoins and Unlocking Adoption

Any bilateral agreement is expected to encompass stablecoins, a critical area within crypto that was prioritized during the Trump administration. The U.S. has significant industry interests in this segment, which could influence future policy directions. Meanwhile, UK advocacy groups have criticized proposed regulations by the Bank of England that aim to restrict individual stablecoin holdings to between 10,000 and 20,000 pounds, arguing that such limits would be operationally challenging and costly to enforce.

Despite growing interest, some UK banks are pulling back from crypto adoption, with a recent survey indicating that roughly 40% of 2,000 investors experienced blocked or delayed payments when dealing with crypto providers. Concerns over volatility, fraud, and scams continue to underlie cautious institutional responses.

In May, the UK proposed a regulatory framework aiming to treat cryptocurrencies, exchanges, and related agents similarly to traditional financial institutions, emphasizing transparency and consumer protection. UK officials are hopeful that aligning rules with the U.S. will facilitate greater access for British firms to American markets and attract more investment into the UK’s burgeoning crypto ecosystem.

UK Public Shows Growing Interest in Crypto

Recent research from UK insurance company Aviva revealed that 27% of 2,000 surveyed adults are considering including cryptocurrencies in their retirement portfolios, citing higher potential returns as a key motivator. Approximately 20% of respondents, equating to roughly 11.6 million people, have owned or currently own crypto, with many maintaining their holdings.

This increasing interest underscores a broader trend of growing adoption and acknowledgment of digital assets, as both individuals and regulators explore the potential of blockchain, DeFi, and NFTs within the evolving crypto markets.