PANews reported on December 11th, citing DL News, that the UK Financial Conduct Authority (FCA) has announced that stablecoins pegged to fiat currencies (such as the US dollar or British pound) will be a major focus of future regulation. This move is part of a broader UK initiative to boost economic growth, which also includes digitizing financial services, enhancing international trade competitiveness, and expanding lending to small businesses. In a statement to UK Prime Minister Keir Starmer, FCA CEO Nikhil Rathi wrote that the FCA plans to "finalize digital asset rules and advance the development of a UK-issued sterling stablecoin" by 2026. Rathi stated, "We will continue to take greater risks to support economic growth while remaining committed to protecting consumers and ensuring market integrity." Rathi also stated that in addition to advancing AI application cases, the agency is prioritizing the migration of traditional assets to blockchain. He said, "We will also enable our world-leading asset management industry to tokenize its funds, thereby improving efficiency and competitiveness."
