Two industry bodies have written to the Treasury calling for clarity on several key aspects of the Draft Statutory Instrument under the Financial Services and Markets Act 2000.
Global Digital Finance (GDF) and the Crypto Council for Innovation (CCI) represent crypto and digital asset firms, and support the UK’s ambition to become a global hub for digital finance through innovation-friendly regulation.
In their letter, the organisations note that the “legislation marks a pivotal moment in the UK’s journey towards becoming a global leader in the digital economy”.
However, both GDF and CCI urge refinements in key areas to ensure regulatory flexibility and alignment with global standards.
Key recommendations include clearer definitions and exclusions related to stablecoin use, staking, wallet services, and safeguarding activities.
“The current approach of classifying a ‘qualifying stablecoin’ as a subcategory of a ‘qualifying cryptoasset’ raises several practical and interpretative challenges which may hinder regulatory clarity and consistent implementation,” the letter states.
The associations also call for a clearer distinction between public and private stablecoin offerings, clarification of what constitutes as fiat currency, and exclusions for solo or non-custodial staking.
They caution against regulatory overreach into areas such as secondary trading and decentralised finance, where no central control exists.
While welcoming this development of regulation, the response stresses the importance of ensuring it enables safe, forward-looking innovation that remains competitive on a global scale.
