Britain can “without a doubt” compete with the United States to become a global hub for cryptoassets, the City minister said, as the government sets out long-awaited legislation to regulate the fast-growing digital assets market.
Lucy Rigby said the proposed framework shows the UK’s intention to be a “global leader in digital asset adoption” as the crypto industry grows increasingly concerned that the UK is moving too slowly while rival jurisdictions move forward.
“This is about recognizing that cryptoassets are here to stay, and so we need to modernize regulation to ensure it is fit for the digital age,” Rigby said. “Companies have been very clear to us that they want regulatory clarity because it allows them to invest here.”
The legislation unveiled on Monday paves the way for a comprehensive UK regulatory regime for cryptoassets like Bitcoin, with rules expected to come into force by 2027. The Financial Conduct Authority will now be responsible for designing the detailed framework.
Crypto firms have long argued that the UK risks falling behind the US and European Union in setting clear rules for the sector, potentially losing out on investment and high-skilled jobs. While proponents say digital assets could transform parts of the financial system, regulators remain cautious. The FCA has repeatedly warned consumers that they should be prepared to lose all their money if they invest in cryptocurrencies.
In the US, President Trump has vowed to make America the “crypto capital of the world” and has advocated for a looser approach to regulation. The EU has also moved faster and introduced its own regulatory regime for cryptoassets, increasing pressure on the UK to accelerate its plans.
Although the UK and US set up a transatlantic taskforce to cooperate on digital assets policy in September, Washington has already made progress in key areas. In July, Trump signed the Genius Act, the first major U.S. federal cryptocurrency law focused on stablecoins, cryptocurrencies pegged to assets such as the dollar. The president’s family has also backed a number of crypto companies, further increasing interest in the industry.
When asked whether Britain could realistically compete with the US, Rigby answered unequivocally. “Absolutely, without a doubt,” she said.
She described the UK’s approach as “forward-looking”, adding: “It is comprehensive and provides consumer protection in the same way we would with other financial products such as stocks.”
Research commissioned by the FCA last year found that around 12 percent of adults in the UK, around seven million people, already own cryptocurrencies, despite there being no comprehensive regulatory regime and the prices of digital assets fluctuating.
“We recognize that more and more people are investing in cryptoassets,” Rigby said, arguing that regulation is needed both to protect consumers and to support responsible innovation.
The push for crypto regulation comes amid broader concerns in Westminster that Britain’s financial services sector is becoming less competitive internationally and business is moving to rival centers such as Wall Street. In response, ministers have called on regulators, including the FCA and the Bank of England’s Prudential Regulation Authority, to cut unnecessary red tape.
Asked about the pace of regulatory reform, Rigby said “both have made significant progress” but acknowledged there is still “more work to be done.”
With the legislation now making its way through Parliament, ministers hope the UK can strike a balance between encouraging innovation and maintaining the high regulatory standards that underpin the City of London’s global reputation.
