Crypto: Uk Dodges ‘us Malaise’ As Regulator Finalizes Crypto Rules 2026

The UK is bringing its multi-year rulemaking process for crypto to a close and, in doing so, may surpass the US, which is currently bogged down trying to resolve the CLARITY Act.

The UK’s top financial regulator is finalizing its framework for the crypto industry. The rulemaking process has been long, but industry observers note that the country has avoided the political tit-for-tat that is hampering the US CLARITY Act.

On Jan. 23, the Financial Conduct Authority (FCA) released its final consultation. The public may now comment on its suggested framework, consisting of 10 regulatory proposals. The three-year process is expected to reach a conclusion in March, with full implementation by October 2027.

The proposed rules have gone through multiple iterations since 2023, as some observers expressed concern that the UK would fall too far behind other countries in the crypto regulatory race.

With the UK poised to have a solid framework for crypto by the end of Q1, it appears to have caught up, at least in part, to the US.

Over the last six years, major economies around the world have raced to form legal frameworks for crypto. In the United States, Congress has passed a stablecoin law, the GENIUS Act, and attempted to pass a crypto framework bill. However, lawmakers hit a snag with the CLARITY Act when major crypto exchange and crypto lobby contributor Coinbase pulled its support.

Nick Jones, CEO and founder of UK-based digital assets platform Zumo, told Cointelegraph that the UK has largely avoided this kind of hiccup, thanks to the FCA’s consultation processes. The timeline has delivered a regulatory regime “that takes all stakeholders’ concerns into account.”

There are notable differences between the US’ proposed CLARITY Act and the FCA’s proposed policies. One prominent example is the UK’s centralized approach to crypto regulation. The UK only has one securities and commodities regulator, the FCA. In its framework, the FCA has set out which assets are subject to which rules.

In the US, there is still some discussion over which agency will regulate certain parts of the crypto sector: the Commodity Futures Trading Commission or the Securities and Exchange Commission. States also have their own financial enforcement agencies and requirements, like New York’s BitLicense regime.

This particularly holds true for stablecoins. Partners at Morrison and Forrester noted, “The UK regulatory regime for stablecoins is centralized, with a single national regime in

Source: CoinTelegraph