Cryptocurrencies: US Regulation

Lord Ranger of Northwood Excerpts

Wednesday 12th November 2025 Lords Chamber

[Lord Livermore (Lab)]

I am not sure I share the noble Earl’s characterisation of the distinction between the two regimes. The US will legislate for their interests, and we will legislate for ours. The US passed legislation for the regulation of stablecoin in the summer. US regulators will publish their regulatory rules in mid-2026, with a backstop date of January 2027 for the US regime to go live. In the UK, the Government published draft legislation in April, with the final legislation due before the end of the year. Alongside that, the FCA is at an advanced stage in its consultations on the details of its regime, with a view to finalise its detailed rules and requirements in 2026. As I said at the outset, we have also created a joint UK-US Transatlantic Taskforce for Markets of the Future, to enable enhanced collaboration on digital assets.

[Lord Ranger of Northwood (Con)]

My Lords, I welcome the comments from the Minister on this topic and note my interest as co-chair of Digital Markets and Digital Money APPG. Two weeks ago, I was in Washington and met members of the US Securities and Exchange Commission—its chair, Paul Atkins, and its commissioner, Hester Peirce—to discuss “Project Crypto”, the road map it announced in August to modernise regulations for the digital asset economy. Its goal is to enable American financial markets to move on-chain and to position the US as a global leader in blockchain and crypto by creating a clearer, more innovative-friendly regulatory framework. While recognising the need to manage risks in financial stability, does the Minister agree that the greater danger to the UK is falling behind jurisdictions such as the US, if they move faster to enable innovation in crypto and digital assets?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question and pay tribute, too, to his expertise in this matter. There is a lot of truth in what he said, which is partly why HM Treasury has jointly established the transatlantic task force with the US Treasury. The purpose of the task force is threefold: first, to identify and explore options for short to medium-term collaboration on digital assets, while legislation and regulatory regimes are still developing; secondly, to identify options to improve links between our capital markets, to enhance the growth and competitiveness of both UK and US markets; and, thirdly, to report, ideally, within 180 days. It is chaired by officials of HM Treasury and the US Treasury, including representatives from the UK and US regulators responsible for capital markets, so that we can share lessons between the two authorities.

Stablecoin Ownership

Lord Ranger of Northwood Excerpts

Thursday 16th October 2025 Lords Chamber

Asked by

[Lord Ranger of Northwood]

To ask His Majesty’s Government what assessment they have made of proposals for limiting stablecoin ownership.

[Lord Ranger of Northwood (Con)]

My Lords, in light of the Lord Speaker’s Statement, let me be the first to thank him for his outstanding service. I look forward to the following months of working with him. I beg leave to ask the Question standing in my name on the Order Paper and I refer to my registered interests as a NED for the ALICE Group and co-chair of the Digital Markets and Digital Money APPG.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, stablecoins stand to play an important role in driving innovation in digital assets. It is important for the UK to position itself as a competitive global destination for digital assets, including stablecoins, while also addressing relevant consumer protection and financial stability risks. The Bank of England is engaging closely with the digital assets sector on its proposals for the regulation of systemic retail stablecoin.

[Lord Ranger of Northwood (Con)]

I thank the Minister for that response, but I want to press him a little. Stablecoins and their usage are growing across the world. At the beginning of this year, $200 billion-worth had been issued—by September this year, it was $280 billion—pushed by the emergence of the GENIUS Act in the US and MiCA in Europe. These regulatory frameworks have enabled corporates to take advantage of being able to move money with agility and confidence, and real-time liquidity. How are we looking to keep up with the pace of the rest of the world as the use of stablecoins looks to reach $1.9 trillion by 2030, providing a distinct competitive advantage to businesses and industry in other geographies?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. Before I answer him directly, perhaps I may also pay tribute to the Lord Speaker. He has been a friend to me since I first joined this House when he was an MP. I pay tribute to his outstanding service as Speaker of this House.

The noble Lord is correct to say that stablecoins have huge potential to play a significant role in both retail and wholesale payments. We are already seeing the benefits that stablecoin can provide in cross-border payments; for example, by reducing costs and improving efficiencies. He is absolutely right that it is important for the UK to harness these opportunities for the ongoing competitiveness of the UK financial services sector.

However, I do not think it is fair to say that the US is going any faster than the UK. Reading media coverage, we may conclude that, but the reality is that the US passed legislation for the regulation of stablecoin in the summer. US regulators will publish their regulatory rules in mid-2026, with a backstop date of January 2027 for the US regime to go live. In the UK, the Government published draft legislation in April, with final legislation due before the end of the year. Alongside this, the FCA is at an advanced stage in its consultation on the details of its regime, with a view to finalising its detailed rules and requirements in 2026. This will allow firms to be authorised and running in the UK regime by 2027.