Catenaa, Friday, August 22, 2025- Leading crypto companies have called on Britain to adopt a national strategy for stablecoins, warning that the country risks trailing the United States in the fast-moving digital asset sector.
In a letter to Finance Minister Rachel Reeves, 30 executives said the UK must act quickly to shape rules rather than follow others. They argued that stablecoins should be treated as core financial infrastructure instead of a threat to contain.
The Treasury confirmed plans to introduce final legislation on crypto assets, including stablecoins, before the end of 2025. Officials said the measures aim to build investor confidence, support growth and protect consumers.
Stablecoins, digital tokens pegged to government-backed currencies, are now central to crypto markets. The two largest, Tether’s USDT and Circle’s USDC, both linked to the U.S. dollar, dominate a global market valued at more than $280 billion. By contrast, pound-pegged stablecoins have a market capitalization of less than $622,000.
Industry figures argue Britain’s legal definition of stablecoins as “crypto-assets with reference to fiat currency” is flawed. They said it focuses too much on form rather than function, limiting growth potential.
Executives from Coinbase, Kraken, Copper, Fireblocks, BitGo and VanEck signed the appeal. They said a coordinated national policy could bolster London’s status as a financial hub, create new revenue streams, and increase demand for gilts through digital channels.
While the market grows, stablecoins remain vulnerable. In 2022, terra and luna collapsed, briefly destabilizing Tether’s peg. Analysts at HSBC said adoption depends on clear rules, noting stablecoins could bridge finance and blockchain if properly regulated.
