UK campaign urges faster stablecoin rules from Treasury

Innovate Finance and the Digital Pound Foundation have launched a campaign calling for faster UK action on stablecoin regulation.

The initiative brings together business groups and payments companies, including ICC United Kingdom, The Entrepreneurs Network and Stripe.

The campaign, Let's Go for British Stablecoin Leadership, argues that the current approach from HM Treasury, the Financial Conduct Authority, the Bank of England and HM Revenue and Customs is slowing stablecoin adoption across the UK economy.

Its backers want ministers and regulators to move faster and provide a clearer framework for pound-backed digital tokens. They also want tax rules changed so stablecoins are treated like fiat currency rather than investment assets.

Policy push

The coalition says the UK should set itself apart from other markets, stay open internationally and support the development of UK-issued stablecoins backed by sterling. It has also made separate requests of the government, the Bank of England, the Financial Conduct Authority and HM Revenue and Customs.

Under the proposals, the government should use its powers to push regulators and related bodies to act more quickly. The Bank of England is being asked to take what the group calls an open and consistent approach. At the same time, the Financial Conduct Authority is being urged to publish a roadmap for stablecoin rules as soon as possible.

HM Revenue and Customs is a particular focus. The campaign argues that current tax treatment risks discouraging the practical use of stablecoins in trade and payments, especially among smaller businesses that could use them for cheaper, faster international transactions.

Stablecoins are digital assets typically linked to traditional currencies such as sterling or the US dollar. Supporters say they could be used in cross-border payments and other parts of financial markets. However, policymakers around the world have also examined issues including financial stability, consumer protection and market integrity.

Industry backing

The list of signatories spans fintech, digital asset and payments groups. It includes Agant, Ava Labs, Bitpanda, Circle, ClearBank, eGBP Digital Sterling, Griffin, GSR, GSR Foundation, Kraken, Nobo Finance, Ripple, Savea, XDC Network and Yapily, alongside the named trade bodies.

The campaign comes as jurisdictions outside the UK continue to advance digital asset rules. That has sharpened industry concerns that uncertainty in Britain could push investment and specialist talent to markets with clearer frameworks.

Supporters also tie the issue to sterling's role in a more digital financial system. They argue that if other currencies become more embedded in tokenised payment networks, the UK could lose influence in a growing part of global finance.

"The economy-wide nature of our signatories confirms what we have long said: there is widespread support for stablecoin adoption across industries and the benefits this could bring to the UK economy. This must be understood and embraced by government and regulators. This provides an opportunity for regulators to listen to industry and deliver, at pace, a regulatory regime which is pro-innovation and pro-growth," said Janine Hirt, Chief Executive of Innovate Finance.

Chris Southworth, Secretary General of ICC United Kingdom, linked the debate to the broader digitisation of financial services. "The future of finance is digital, and stablecoins are part of this emerging landscape. We welcome initiatives that support innovation and strengthen the UK's global leadership in financial services," he said.

Other signatories highlighted business use cases. Advocates say stablecoins could offer a more direct way to move money between countries, with lower fees and faster settlement than some existing payment arrangements.

"Stablecoins are a safe form of digital money that complements the existing monetary system with new functionality and accessibility. The UK regulators have done a huge amount of work preparing the regulatory regime over the last few years. The time has come to recognise stablecoins' inherently safe business model and adopt a pro-innovation, principles-based rulebook," said Andrew MacKenzie, Founder and Chief Executive of Agant.

Stripe also used the launch to press for a clearer framework. "Stablecoins make global-by-default financial services a real possibility for the first time. The UK needs a regulatory framework that allows businesses to realise those benefits, particularly for cross-border payments, where the UK already leads. The UK has always been at the frontier of global finance, and we see stablecoins as a key driver of the next wave of innovation," said Sam Hinton-Smith, UK Site Lead at Stripe.

The Entrepreneurs Network framed the issue as one of competitiveness for start-ups and scale-ups looking beyond the domestic market. "For entrepreneurs with global ambitions, stablecoins offer a faster, cheaper, and more reliable way to move money across borders and conquer new markets. Britain has the pedigree to play a leading role in the stablecoin revolution, but it cannot simply assume it will. A clear, pro-innovation framework for stablecoins would give founders the tools they need to grow, while demonstrating that Britain remains open to the next generation of financial innovation," said Philip Salter, Founder of The Entrepreneurs Network.

One issuer in the campaign also pointed to demand for sterling-based tokens. "As one of the top 10 non-US dollar stablecoins in circulation today, we are seeing rapid uptake of our tGBP sterling stablecoin listed on leading exchanges. As global markets look beyond dollars, there is a clear and growing appetite for sterling-backed digital assets and Blockchain payment rails. This highlights the potential for UK growth, which this campaign seeks to unlock," said Benoit Marzouk, Chief Executive of Tokenised GBP.