New U.K. Prime Minister May Support Crypto

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Liz Truss, the newly elected Prime Minister of the United Kingdom, is reportedly pro-crypto following news of her previous support for digital assets.

Lizz Truss’s Previous Crypto Support

According to reports making the round, the new occupant of 10 Downing Street is a known fan of cryptocurrency. Having defeated her closest rival, Rishi Sunak, Truss is set to become the next Prime Minister of Britain following Boris Johnson’s resignation in July.

Moreover, Truss has shown her interest in cryptocurrency in 2018 by tweeting that digital assets should be welcomed and regulated. As per reports, the lawmaker has not publicly expressed her support for digital assets.

However, her emergence as the new Prime Minister of Britain has excited the crypto community.

The former head of the U.K.’s Treasury, Rishi Sunak, has openly steered the United Kingdom’s financial regulations toward virtual assets. He is also known to have established pro-crypto laws to oversee the volatile risk asset ecosystem.

Furthermore, in April 2022, Sunak initiated the U.K. Treasury drive to legalize the USDC’s stablecoins as a means of payment within Britain. In addition, reports indicate that the Royal Mint was ready to support the government in issuing non-fungible tokens (NFT). Under Sunak’s leadership, the Treasury has been working on positioning the U.K. as a crypto-friendly space.

Meanwhile, having a pro-crypto prime minister at the helm of affairs in Britain could help ensure standard regulations for the crypto ecosystem.

Even though the Financial Conduct Authority (FCA) has been cracking down on erring crypto exchanges, the U.K. is poised to standardize the crypto market within its jurisdictions.

U.K.’s New Stablecoin Rules

Last month, one of the most talked-about issues in the U.K. was the proposed bill to empower regulators to manage the crypto industry. However, the crypto community has welcomed the new guideline as it seeks to oversee the digital asset space.

The financial watchdogs have yet to release details about the proposed stablecoin guidelines as the industry awaits further development.

Sources familiar with the latest development indicate that the bill seeks to bring stablecoins into the mainstream payment system. However, there are uncertainties about the new rules should the parliament give the go-ahead for their implementation.

Moreover, the bill is scheduled for debate this month before being moved to another legislative process.

Still, the recent cabinet change may likely see the bill delayed further. As it stands, crypto advocates are hoping for favorable outcomes from the deliberation of regulators.

The U.K. crypto community wants to see how the regulators will enforce the rule and their approaches.

Furthermore, the U.K. sees the proposed stablecoin rule as part of its broader financial services reform following the Brexit drive.

Regulators want to extend the existing financial rules to include digital assets like stablecoins.

The U.K. is part of a larger regulatory drive following the Terra UST collapse. Governments worldwide have reacted to the outcome by going hard on crypto exchanges within their jurisdictions.

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