Crypto Firm Circle Sees UK Stablecoin Legislation in the Near Future

A representative from crypto firm Circle indicated that stablecoin legislation could be implemented by UK regulators within the coming months.

Stablecoins, notably Tether’s USDT and Circle’s USDC, have grown significantly as digital assets over the past few years. Despite their prominence, UK regulatory frameworks for these assets have been slower to develop.

Following meetings with officials at the Bank of England, Dante Disparte, Global Head of Policy at Circle, expressed optimism about imminent regulations. He told CNBC that stablecoin laws could be in place “months, not years,” according to this report. No official comments have been issued by the Bank of England or UK Treasury.

UK Lags in Crypto Regulation

The UK has trailed behind the EU in crafting a comprehensive crypto regulatory framework. The EU’s Markets in Crypto Assets (MiCA) regulations are set to take effect this year, encompassing detailed rules for stablecoins among other digital assets.

Disparte attributed much of the UK’s hesitance towards robust crypto regulation to lingering concerns post-FTX collapse and broader anxieties about fraud and financial risks. “Many in the UK would argue that they’re vindicated not having moved too quickly on fully regulating crypto, considering all the issues we’ve seen,” said Disparte.

Stablecoins: Future of Digital Currency

Due to their one-to-one tracking with fiat currencies and reduced volatility compared to other cryptocurrencies, stablecoins offer practical applications. Major players in the payments industry have started incorporating them; PayPal introduced its USD stablecoin earlier this year, and Stripe invested significantly in stablecoin technology.

The potential benefits of stablecoins underscore the need for a supportive UK regulatory environment. “Failing to create an infrastructure for stablecoins could hinder economic growth and the development of future industries,” emphasized Disparte.