The UK government is set to draft a regulatory framework for the cryptocurrency industry by early 2025, according to Economic Secretary Tulip Siddiq, who announced this at a conference in London. This long-awaited framework will specifically address stablecoins and staking services, helping to clarify the regulatory environment that has left many in the industry uncertain for months. Under the new rules, stablecoins will not be categorized under the UK’s payments regime, and regulations on staking will be introduced to avoid its classification as a collective investment scheme. This announcement is significant as it follows the Labour government’s election in July, which left many questions about its plans for cryptocurrency regulation amid ongoing discussions about how to treat digital assets. Previous regulations under the Conservative government had recognized crypto as a regulated activity within the Financial Services and Markets Act, stating further measures would be forthcoming for stablecoins and staking services.

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