A Circle spokesperson said the UK plans to introduce legislation to regulate stablecoins in the coming months.
Circle, the issuer of USD Coin (USDC), expects these laws to be implemented soon, as stated in a CNBC interview with Dante Disparte, Circle’s head of global policy.
Disparte told CNBC that stablecoin legislation will be implemented in the UK “within months, not years.”
The use and adoption of stablecoins skyrocketed in the third quarter of 2024, with stablecoin market capitalization reaching an all-time high of nearly $170 billion in the third quarter of 2024.
Stablecoins have gained popularity because they offer the benefits of cryptocurrencies, such as fast and borderless transactions, while aiming to avoid the volatility associated with digital assets such as Bitcoin (BTC).
The growth of these assets has also attracted attention from regulators concerned about the stability and transparency of these assets.
MiCA and the UK
While the European Union has already introduced crypto market regulations that provide a comprehensive legal framework for stablecoins and other digital assets, the UK has been slow to introduce specific legislation.
Earlier this month, the UK Parliament received a proposal to classify digital assets as personal property under UK law. Justice Minister Heidi Alexander said the bill will protect crypto owners from fraud and simplify ownership disputes.
The previous Conservative government, led by Rishi Sunak, outlined plans to make the UK a world leader in cryptocurrencies, including regulatory oversight of stablecoins.
However, since the transition to the current Labor government, crypto regulation has received less attention, but recent developments suggest that this may change soon.
Introducing clear rules for these assets could help the UK take advantage of the full potential of technology, such as faster payments and innovation in financial services, while also addressing the risks that have arisen in the past. .
