FCA Outlines Crypto Sector Regulations; Labour Shifts Stablecoin Focus
The Financial Conduct Authority (FCA) has outlined its plans for consultations and regulations in the crypto sector. The Economic Secretary to the Treasury, Tulip Siddiq, has also announced a unified approach to crypto regulations. Meanwhile, the new Labour government has shifted its focus on stablecoin legislation.
The FCA is dividing its consultations into four groups. This quarter, it will release discussion papers on admission and disclosures, as well as market abuse. Additionally, it plans to publish a consultation on the 'Senior Managers and Certification Regime (SMCR) Review' in the first quarter. This review aims to streamline approvals, certification, and governance documentation, with consultations closing on October 7, 2025.
In a speech, the Economic Secretary to the Treasury, Tulip Siddiq, revealed that all crypto regulations will be implemented in a single phase. This approach contrasts with the previous Conservative government's plan to have regulations for stablecoins and cryptocurrency staking in place by now. The new Labour government, however, is not prioritizing stablecoin legislation to encourage innovation in the sector.
The FCA has also published the results of a recent crypto survey and a roadmap for consultations. Legislation is expected to come into force in 2026, likely towards the end of the year.
The FCA's consultations and the Labour government's approach to crypto regulations are set to shape the UK's crypto landscape in the coming years. With the FCA's roadmap and the government's unified approach, the sector can expect significant changes by the end of 2026.
