Cryptocurrencies: US Regulation

Lord Ranger of Northwood Excerpts

Wednesday 12th November 2025 Lords Chamber

[Lord Livermore (Lab)]

I am not sure I share the noble Earl’s characterisation of the distinction between the two regimes. The US will legislate for their interests, and we will legislate for ours. The US passed legislation for the regulation of stablecoin in the summer. US regulators will publish their regulatory rules in mid-2026, with a backstop date of January 2027 for the US regime to go live. In the UK, the Government published draft legislation in April, with the final legislation due before the end of the year. Alongside that, the FCA is at an advanced stage in its consultations on the details of its regime, with a view to finalise its detailed rules and requirements in 2026. As I said at the outset, we have also created a joint UK-US Transatlantic Taskforce for Markets of the Future, to enable enhanced collaboration on digital assets.

[Lord Ranger of Northwood (Con)]

My Lords, I welcome the comments from the Minister on this topic and note my interest as co-chair of Digital Markets and Digital Money APPG. Two weeks ago, I was in Washington and met members of the US Securities and Exchange Commission—its chair, Paul Atkins, and its commissioner, Hester Peirce—to discuss “Project Crypto”, the road map it announced in August to modernise regulations for the digital asset economy. Its goal is to enable American financial markets to move on-chain and to position the US as a global leader in blockchain and crypto by creating a clearer, more innovative-friendly regulatory framework. While recognising the need to manage risks in financial stability, does the Minister agree that the greater danger to the UK is falling behind jurisdictions such as the US, if they move faster to enable innovation in crypto and digital assets?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question and pay tribute, too, to his expertise in this matter. There is a lot of truth in what he said, which is partly why HM Treasury has jointly established the transatlantic task force with the US Treasury. The purpose of the task force is threefold: first, to identify and explore options for short to medium-term collaboration on digital assets, while legislation and regulatory regimes are still developing; secondly, to identify options to improve links between our capital markets, to enhance the growth and competitiveness of both UK and US markets; and, thirdly, to report, ideally, within 180 days. It is chaired by officials of HM Treasury and the US Treasury, including representatives from the UK and US regulators responsible for capital markets, so that we can share lessons between the two authorities.