This week, the UK government is under fire for its tepid endorsement of digital asset innovation. In contrast, the US is forging ahead in the crypto space, causing dissatisfaction among UK fintech stakeholders.
The source of this frustration stems from recent US advancements. Most notably, the new legislation under the GENIUS Act allows payment stablecoins. This Act signifies a crucial move towards incorporating digital assets into mainstream finance.
Moreover, the US is actively drafting legislation on crypto market infrastructure. This proactive attitude starkly contrasts the UK’s more passive approach, perceived by some as a barrier to innovation.
Concerns over the UK’s approach
Several critics argue that the UK’s approach not only stifles innovation but also risks driving innovators and entrepreneurs to friendlier jurisdictions. Consequently, the UK might fail to reap the many benefits of digital assets, such as enhanced financial inclusion and efficiency.
Given the crypto market’s rapid expansion, this inaction is particularly alarming. The global market capitalisation for cryptocurrencies astonishingly hit $2 trillion earlier this year. This magnitude and potential for further growth underscore the need for supportive regulation.
Although the UK government has made strides in the fintech sector, such as establishing regulatory sandboxes, it falls short in the crypto field. Despite the potential of digital assets, the UK remains wary, prompting critics to caution about potential long-term costs.
In conclusion, the persistent criticism underscores the UK’s need to adopt a more proactive stance towards digital assets. As the US advances with crypto-friendly legislation, the UK’s conservative stance risks lagging in the global crypto market.
