The United Kingdom is working towards enacting new legislation to regulate stablecoins and crypto staking within the next six months.

Speaking at a crypto event hosted by Coinbase in London on February 19, Economic Secretary to the Treasury Bim Afolami stated that the government is striving to ensure the passage of the new laws before this year's general election, as reported by Bloomberg.

"We're very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable."

When pressed for further details on the long-awaited crypto regulation, Afolami declined to provide specific information.

"Short answer is, I don't know [...] There's just a huge amount going on, so I don't want to commit to that now," he said.

In 2022, U.K. Prime Minister Rishi Sunak pledged to establish the country as a "global crypto hub," emphasizing the necessity for crypto firms to be able to "invest, innovate and scale up" in the United Kingdom.

However, since then, little significant progress has been made on regulation in the country, despite numerous calls for clearer rules from crypto firms operating in the U.K.

On July 3, 2023, the U.K. Law Commission issued four major recommendations to reform domestic laws concerning crypto use and ownership.

The commission advocated for the creation of a distinct category of personal property to accommodate and safeguard the unique features offered by digital assets.

Additionally, it recommended that the government conduct a common law analysis of crypto assets and establish an industry-specific panel comprising technical experts, academics, and legal practitioners to advise courts on crypto-related legal matters.

On October 30, 2023, the U.K. government announced its intention to introduce more crypto-specific regulations during 2024 and to bring the regulation of fiat-backed stablecoins under the oversight of the Financial Conduct Authority (FCA).

As the U.K. prepares for its upcoming general election, expected to be called sometime in the second half of 2024, the Labour Party, which is anticipated to be less supportive of crypto, is leading in early-stage polls.

Sources:

https://cointelegraph.com/news/uk-crypto-laws-stablecoins-staking-six-months-report

https://www.bloomberg.com/news/articles/2024-02-19/uk-s-afolami-says-expects-rules-on-stablecoins-crypto-staking-within-six-months?sref=dJOSAJZH

https://www.theguardian.com/politics/ng-interactive/2024/feb/19/uk-general-election-opinion-polls-tracker-latest-labour-tories-starmer-sunak