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Highlights
- New Chancellor of Exchequer Nadhim Zahawi is all set to introduce a bill in the Parliament to use stablecoins on 20 July.
- Zahawi will introduce the New Markets bill, which is aimed at strengthening the UK financial system post-Brexit.
The UK stablecoin is all set to get a major boost on 20 July when the new Chancellor of Exchequer Nadhim Zahawi would table the much-awaited bill, New Markets bill, in the Parliament for the governance of stablecoins in the UK.
The stablecoins have been under the watch following the Terra collapse in May. Later, Tether lost its peg too, which led to losses worth billions. In a bid to control the situation, Zahawi will introduce the all-important New Markets bill, which is aimed at strengthening the UK financial system post-Brexit.
What may it entail?
Although there is a lack of clarity on what it would entail for the stablecoin market, as per the HM Treasury update, the Chancellor is expected to deliver on the vision of an open, green, and technologically advanced financial services sector that would be globally competitive.
In May this year, the HM Treasury had hinted that it would regulate stablecoins as a legal tender. Prince Charles had said that bringing a bill on the same would strengthen the regulatory powers to tackle illicit players and thereby reduce economic crimes.
The timing of the New Markets Bill is critical, considering the UK is facing one of the worst periods of economic crisis due to the inflation and cost-of-living crisis. Besides, it can also be viewed as a positive step as an official announcement may usher up the markets, which managed to reclaim the US$1 trillion mark after seeing months of bearishness.
Earlier this month, Bank of England deputy governor Jon Cunliffe hinted that the UK would definitely see the implementation of the stablecoin rules before August. Earlier, former chancellor Rishi Sunak had announced that he wishes to see the UK as an upcoming crypto hub.
Conclusion
Overall, the crypto industry in the UK will be eagerly waiting for the outcome of this bill, considering it would give them clarity on how to proceed within the country. This comes at an opportune time, considering the European Union had recently reached a provisional agreement on its landmark MiCA bill, becoming the first continent with a clear-cut stance on the crypto regulation.
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