UK,US Collaborate on Crypto Regulations to Foster Web3 Growth

The UK is planning to enact new crypto regulations, aiming to foster the growth of the domestic Web3 industry while ensuring consumer protection. The new policies will be developed in collaboration with US counterparts, including Scott Bessent. The Treasury has emphasized its commitment to cracking down on bad actors, which has raised skepticism within the community about the UK's approach to regulation.

In the US, the SEC's new Crypto Task Force is actively engaging with business leaders and prioritizing the development of a comprehensive stablecoin framework. The UK's plans for crypto regulation share similarities with the US approach but also have notable differences. The UK's Chancellor of the Exchequer, Rachel Reeves, has stated that the new regulations aim to make Britain the best place to innovate and the safest place for consumers. The Treasury has published several documents outlining proposed changes, which are heavily influenced by cooperation with the US. Reeves met with Treasury Secretary Scott Bessent to discuss topics such as a cross-border regulatory sandbox, which has industry support. Additionally, an upcoming UK-US Financial Regulatory Working Group will further coordinate policy goals.

However, the Treasury's messaging on UK crypto regulation has a strong focus on combating bad actors, which has led to some skepticism within the community. The UK's past crypto regulations have been criticized for overreach, prompting some firms to leave the nation. This reputation may hinder serious Web3 growth in the region. The Crypto Professor, a prominent figure in the community, expressed skepticism about the UK's ability to lead the digital era, given its current regulatory challenges. Despite this, the government plans to publish an actionable plan to update crypto regulation in the UK by July, allowing ample time to set policy. The outcome remains uncertain, especially as the UK coordinates with US counterparts.