Britain can compete with US as a crypto hub, insists City minister

The UK government has unveiled legislation to regulate cryptoassets, with City minister Lucy Rigby saying Britain can compete with the US and aim to have rules in force by 2027, leaving the Financial Conduct Authority to design the regime’s details; the move is pitched as a forward-leaning, consumer-protective framework similar to rules for stocks and shares. The measures respond to industry demands for regulatory clarity amid fears of losing investment and jobs to the US and EU—where initiatives such as the US Genius Act and a lighter-touch stance are already advancing—and come despite FCA warnings about the high risk to retail investors and research showing roughly 12% (about seven million) of UK adults hold cryptoassets. Rigby acknowledged progress at the FCA and PRA but said there is more to do to ensure the UK remains internationally competitive in financial services.

Analysis

The UK government has published legislation to regulate cryptoassets with the stated aim of having rules in force by 2027 and tasks the Financial Conduct Authority with designing the regime, a move City minister Lucy Rigby described as "forward-leaning" and intended to offer consumer protections similar to those for stocks and shares. Rigby framed the initiative as enabling investment into the UK crypto sector, and officials have signalled urgency to prevent loss of business and jobs to the US and EU while urging the FCA and the Prudential Regulation Authority to accelerate implementation. The article highlights competitive pressure from the US — which enacted the Genius Act in July and is pursuing a lighter-touch stance — and EU rulemaking, while the FCA continues to warn retail investors of high loss risk; FCA-commissioned research cited about 12% of UK adults, roughly seven million people, owning cryptoassets. Market signals in the piece show continued price volatility (bitcoin noted below $90,000 amid AI-related jitters) and a mildly positive market sentiment toward the UK regulatory announcement; the ultimate investment outcome will hinge on the specifics and timing of FCA rulemaking and whether the regime incentivises firms to domicile or scale in the UK.

Key Decisions for Investors

• Wait for the FCA's draft rules before increasing material exposure to UK-listed crypto or crypto-adjacent companies, as the regulatory details will determine competitive advantages and licensing timelines
• Maintain or establish hedges against crypto price volatility (e.g., options or reduced position size) given the FCA's retail-loss warnings and recent bitcoin movement below $90,000
• Monitor execution indicators — publication of FCA rule consultations, PRA guidance, and firm relocations — and consider overweighting US or EU crypto infrastructure names if the UK fails to demonstrate rapid, firm-level adoption