Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government plans to use the powers in the Financial Services and Markets Bill 2026 to establish a mutual recognition framework for digital assets, including stablecoins, to support the UK's competitiveness as a global financial centre.

The Government acknowledges the potential benefits of recognising compatible jurisdictions’ regulatory regimes, including promoting growth and competitiveness by supporting cross-border activity.

The Financial Services and Markets Bill will enable HM Treasury to establish bespoke Overseas Recognition Regimes, where doing so will benefit the UK. The Government will consider using these powers for digital assets, where appropriate, subject to an assessment of the compatibility of the relevant jurisdiction’s regulatory and supervisory framework.