Former UK Chancellor George Osborne has criticized the Labour government's cautious approach to cryptocurrency, warning that Britain risks becoming "completely left behind" in a financial revolution reminiscent of the 1980s Big Bang reforms. Writing in the Financial Times, Osborne urged Chancellor Rachel Reeves to adopt a more proactive stance, similar to the US Congress, by implementing clear legal frameworks for crypto and stablecoins. He argued that the UK is falling behind other jurisdictions like the US, EU, Singapore, and Abu Dhabi in regulatory openness and innovation.
Osborne, now a member of the global advisory council of US crypto-exchange Coinbase, dismissed blaming regulatory caution, stating more decisive government action is needed. Reeves asserts that the UK is taking steps to establish robust crypto rules and remains a fintech leader, but the Bank of England, led by Andrew Bailey, maintains a cautious stance. The BoE recently began softening its approach to stablecoins, planning a consultation in autumn, though Bailey remains skeptical of their stability and sees tokenized deposits as a better alternative.
Meanwhile, the European Central Bank has voiced concerns over the dominance of U.S. dollar-backed stablecoins in the eurozone, warning that their use could weaken ECB monetary control. At the same time, PayPal launched a worldwide crypto payment feature, underlining how U.S. companies are actively pushing forward in the digital asset space. The newsletter suggests that Europe is lagging significantly behind, despite the ECB promoting development of euro-based alternatives and urging global regulatory coordination.
In the United States, President Donald Trump has taken significant steps to integrate cryptocurrency into the national financial system. In January, he signed an executive order establishing the U.S. digital asset stockpile, including a strategic Bitcoin reserve. This move aims to position the U.S. as a leader in the global crypto market. Additionally, Trump appointed Paul S. Atkins, known for his close ties to the crypto industry, as Chair of the Securities and Exchange Commission , signaling a shift towards a more crypto-friendly regulatory environment.
As the global landscape evolves, the UK's cautious approach to cryptocurrency regulation may hinder its competitiveness in the rapidly growing digital asset market. Industry leaders and policymakers are calling for a more proactive stance to ensure that the UK remains a significant player in the global financial sector.
