A major step towards comprehensive crypto regulation in the United Kingdom is now on the horizon. Following a petition led by a crypto advocacy group, which has gathered nearly 20,000 signatures, the UK government has confirmed that new legislation for digital assets will be introduced this year.

Petition Sparks Government Response

The petition, launched by a UK-based crypto advocacy group, called on the government to push for a pro-innovation regulatory framework covering stablecoins and tokenised assets. It also urged officials to explore blockchain’s role in government services and to appoint a “crypto & blockchain czar” to oversee adoption.

While the petition has not yet reached the 100,000-signature threshold required for parliamentary debate, with 19,275 signatories at the time of publication, the government has issued an official response. On 29 September 2025, it acknowledged the growing momentum of the digital asset sector and pointed to measures already underway.

Wholesale Digital Markets Strategy

Central to the government’s response is the Wholesale Digital Markets Strategy, first unveiled in July 2025. The strategy aims to deliver a clear framework for tokenised financial assets, improve post-trade processes, and provide new technologies with a pathway from pilot stage to permanent implementation.

The government confirmed its intent to bring forward legislation this year, with the goal of establishing a financial services regulatory regime tailored to crypto. Key provisions will include enabling the launch of a GBP-backed stablecoin, while also creating mechanisms to allow effective market access for stablecoins issued overseas.

Officials emphasised that this framework would be “cross-sectoral,” signalling broader applications of blockchain across wholesale markets, not only within the financial sector but also in processes that underpin wider market infrastructure.

Digital Leadership and Global Coordination

Another key announcement is the planned appointment of a “Digital Markets Champion”, a figure who will spearhead domestic blockchain and crypto adoption. The role is expected to coordinate with industry and policymakers, ensuring the UK maintains a competitive edge while remaining aligned with international standards.

This comes alongside the recently announced Transatlantic Taskforce for Markets of the Future, a UK–US collaboration focused on digital asset regulation and innovation. The initiative highlights a clear intent for the two nations to align more closely on crypto policy, particularly in areas such as stablecoin regulation, market oversight, and blockchain use in wholesale finance.

Market Momentum Builds Ahead of ETN Launch

The government’s statement also arrives at a critical moment for the UK’s digital asset markets. On 8 October 2025, the Financial Conduct Authority (FCA) will lift its ban on crypto exchange-traded notes (ETNs), clearing the way for institutional investment products to trade on the London Stock Exchange.

Global asset managers, including BlackRock and 21Shares are among those preparing to launch crypto ETNs, a move widely seen as a milestone for mainstream adoption in the UK. The introduction of ETNs is expected to significantly deepen market liquidity and create a bridge between traditional finance and the growing crypto economy.

Outlook

With nearly 20,000 citizens already backing the petition and official confirmation that regulation is coming, momentum is firmly behind the UK’s push to position itself as a global hub for digital assets. The combination of a GBP-backed stablecoin, pathways for international stablecoins, and the lifting of the ETN ban suggests that the UK is entering a new phase of innovation-led regulation.

If executed effectively, the government’s approach could not only safeguard investors and ensure market integrity but also strengthen the UK’s status as a leader in fintech and digital markets.