Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential risks cryptocurrency market volatility poses to financial stability.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. The FPC’s latest Record (October 2025) sets out its views on the financial stability outlook, including its assessment of market related risks.

The government intends to bring forward legislation this year to create a comprehensive financial services regulatory regime for cryptoassets in the UK.

The UK also continues to play an active role internationally on work to respond to the global challenges and opportunities posed by digital asset innovation, including potential risks to financial stability, through fora such as the Financial Stability Board.