UK Teams Up With US on Digital Asset Regulation — Impact on SHIB Holders

UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent have held talks on boosting bilateral coordination in the crypto sector, with discussions focused on digital asset regulation and strategies to draw greater investment into Britain.

Key points:

• UK and US officials discuss closer collaboration on digital asset regulation and strategies to boost crypto investment.
  
• UK may adopt aspects of the Trump administration’s pro-crypto stance, including stablecoin provisions, amid concerns over Bank of England caps.
  
• Experts warn the UK risks falling behind in the global digital asset race without swift regulatory reform.

The UK is reportedly considering adopting elements of the Trump administration’s pro-crypto approach, with any potential agreement between London and Washington expected to feature provisions on stablecoins, the Financial Times reported, citing people familiar with the discussions.

Representatives from major crypto firms, including Coinbase, Ripple, and Circle Internet Group, joined executives from leading banks such as Bank of America, Barclays, and Citi for the discussions.

“Together we are delivering investment and opportunity for both our countries,” Reeves wrote in an X post, sharing a picture of herself and Bessent outside Downing Street. 

The government’s latest move comes as UK crypto advocacy groups push back against a Bank of England proposal to cap individual stablecoin holdings, arguing the limits would be costly to implement and undermine the country’s global competitiveness. 

In a November 2023 discussion paper, the Bank floated caps between £10,000 and £20,000 ($13,000–$27,000) per person, while also seeking feedback on a potential lower threshold of £5,000.

Furthermore, this push for digital asset regulation comes amid warnings that the UK could lose ground in the global crypto race without swift action. In August, former finance minister George Osborne criticized both the Labour government and the Bank of England for falling behind as other nations move forward with their crypto strategies.

Osborne likened the moment to the “Big Bang” deregulation of the 1980s, which helped establish London as a financial powerhouse, cautioning that without bold action, Britain could miss a comparable opportunity in the digital asset era.

Digital Asset Regulation Shift and SHIB’s Market Outlook

The UK’s pivot toward aligning more closely with U.S. crypto policy could carry meaningful implications for specific tokens, including Shiba Inu (SHIB). A regulation-driven framework would not only bring clarity to investors but also potentially expand market access.

A friendlier stance may translate into greater liquidity for SHIB, streamlined entry points for both retail and institutional investors, and reinforced confidence in its long-term adoption. By synchronizing policies with Washington, London could help set the stage for SHIB to operate within a more stable and attractive trading environment across global markets.

Read More

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• UK Interest Rate Cuts Spark Crypto Buzz — Could SHIB See a Demand Surge?
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.