Bitcoin News Today: UK FCA Proposes Lifting 2020 cETN Retail Ban Amid Global Demand Industry Push

The UK Financial Conduct Authority (FCA) is proposing to lift its 2020 ban on retail access to crypto exchange-traded notes (cETNs), a move that could enable everyday investors to trade these regulated derivatives on cryptocurrencies like Bitcoin and Ethereum through official platforms. This shift follows sustained industry pressure for regulatory clarity and aligns with growing global demand for crypto investment vehicles. Final rules are expected after summer 2025, with potential expansion beyond Bitcoin and Ethereum under consideration [1].

The FCA’s consultation has drawn strong support from industry stakeholders. CryptoUK, the UK’s leading crypto association, praised the proposed change but emphasized that it should mark the beginning of broader reforms, including retail access to crypto ETFs. These products, which offer exposure to cryptocurrencies without direct ownership, are seen as a safer alternative to self-custody and are already prevalent in traditional finance [1]. Firms such as 21Shares and Coinbase UK echoed this sentiment, warning that restrictive access could drive investors to unregulated offshore exchanges, increasing systemic risks. Coinbase’s Keith Grose highlighted the UK’s opportunity to leverage successful models from the US and Europe, though delays risk ceding ground to markets like Germany and Switzerland, where crypto ETFs are already active [1].

Regulators and industry participants acknowledge the inherent volatility of cETNs and cryptocurrencies, which carry risks of total loss. The FCA’s revised framework is anticipated to include enhanced safeguards, such as stricter disclosure requirements and leverage limits, to mitigate these risks [1]. Despite these precautions, critics argue that the complexity of cETNs may still be unsuitable for less sophisticated investors.

The potential approval of cETN retail access reflects a broader trend of regulatory convergence in crypto markets. The UK’s move comes amid global developments, including the US approval of spot Bitcoin ETFs and the European Central Bank’s focus on stablecoin oversight. By modernizing its approach, the UK aims to solidify its position as a crypto innovation hub post-Brexit. However, the FCA’s path is distinct, balancing innovation with investor protection in a rapidly evolving landscape [1].

Analysts suggest the final decision will hinge on two factors: stakeholder consultations and the ability to address systemic risks without stifling growth. While some advocate for a cautious but forward-looking strategy, others caution against premature liberalization. The absence of a clear timeline underscores the complexity of the issue, with final rules potentially emerging by early 2026 [1].

The proposed change also aligns with the integration of blockchain-based assets into traditional finance. Recent initiatives, such as tokenized assets on mainstream platforms, highlight the growing demand for interoperable systems bridging legacy infrastructure and decentralized technologies [6]. If implemented, the UK’s regulatory shift could set a precedent for global markets, demonstrating how innovation and risk mitigation can coexist.

Source:

[1] [UK Crypto Regulation Update: FCA May Approve Retail cETNs](https://coinpedia.org/news/uk-crypto-regulation-update-fca-may-approve-retail-cetns/)

[2] [The UK has one of the most vibrant crypto retail markets in the world—it needs to capitalize on it](https://www.finextra.com/blogposting/28975/the-uk-has-one-of-the-most-vibrant-crypto-retail-markets-in-the-world---it-needs-to-capitalise-on-it)

[3] [FinTech Global FS Regulatory Round-up - w/e 18 July 2025](https://www.lexology.com/library/detail.aspx?g=16d2ee56-1b3a-4df3-b2ab-9cf4bc8324ae)

[4] [Stablecoin Legislation Sets the Stage for Digital Payment Disruption](https://deloitte.wsj.com/cmo/stablecoin-legislation-sets-the-stage-for-digital-payment-disruption-ddfcf2ab?gaa_at=eafs&gaa_n=ASWzDAhQXkW91lqrpnyzp2Czs4FhP_arodnhZZLm89FWdQocAPVJY-R2_f-t&gaa_sig=T-EjeL9JIT5eWW1Py0ajp283pdWKd7uzkly3Whcouqv47AZMNBfdeYUcYpRB3QciPid8DHO101qSj8ulU1mqdQ%3D%3D&gaa_ts=68846a34&mod=Deloitte_cmo_wsjsf_h1)

[5] [Banking Regulators Address Crypto Custody](https://www.dechert.com/knowledge/onpoint/2025/7/banking-regulators-address-crypto-custody--implications-for-asse.html)

[6] [Integrating traditional financial instruments with blockchain to change the world](https://www.fxstreet.com/education/integrating-traditional-financial-instruments-with-blockchain-to-change-the-world-202507251147)