There has been a maelstrom of complaints this week targeting the UK government and its tepid response toward digital asset innovation. As the US moves forward with new law that enables payment stablecoins under the GENIUS Act, and pending legislation on crypto market infrastructure, the CLARITY Act, the UK is being left behind, according to insiders.
Yesterday, former Chancellor of the Exchequer George Osborne hammered the lack of leadership under the Current Chancellor, Rachel Reeves, who has publicly declared her goal to reduce red tape and fuel business growth.
Today, CI has received commentary from another digital asset insider who worries about the lack of action by the Labour government.
Mark Aruliah, Head of EMEA Policy and Regulatory Affairs at Elliptic, believes the UK FCA’s recent decision to allow retail access to crypto exchange-traded notes (cETNs) is a positive move that may signal regulators’ growing view of the digital asset market as maturing. Aruliah believes this could be a harbinger for more inclusive participation, backed by consumer protection. At the same time, the inability to act with haste is harming the UK’s ability to compete globally.
“.. momentum matters,” says Aruliah. “Other global regions, notably the US and Singapore, are moving quickly, setting frameworks into law and cementing their position as financial hubs for digital finance. The UK must continue to act with the same clarity and purpose to remain competitive. In the last week, we’ve seen this in the U.S. with the Digital Asset Report, a substantial playbook for the next era of the U.S.’s crypto strategy and the most comprehensive digital asset policy document to date.”
He predicts that digital assets will become embedded in the global financial system and the UK must pursue a regulatory regime that balances innovation with risk.
“Clarity will unlock investment, support responsible growth, and ensure the UK keeps pace with this rapidly evolving landscape.”
While the UK may be stuck in the rough right now, it is not too late … if regulators and elected officials act with more haste.