Rocket Boost for UK Economy
On June 28, King Charles III granted Royal Assent to a landmark bill to “regain control of the financial services rulebook.” The Financial Services and Markets Bill 2023 was approved by the upper chamber of the UK parliament on June 19. The bill includes measures to bring crypto assets and stablecoins into the scope of regulation, giving them powers to oversee the digital asset sector.
The Treasury described the bill as a “rocket boost” for the UK economy, which has been battered during the pandemic and its exit from Europe. It clarified that the bill “enables the regulation of crypto assets to support their safe adoption in the UK.” Economic Secretary to the Treasury, Andrew Griffith, said: “2023 is proving to be a banner year for reforming our financial services.” “This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.”
During the formulation of the bill, amendments were made to include crypto as a regulated financial activity and to supervise crypto promotions and advertising. Stablecoins have also been included in the bill’s oversight of payment regulations.
The legislation could entice more crypto companies to the UK from the United States, which is currently trying to push them out by ‘carpet bombing’ the industry with lawsuits. Instead of rolling out its own regulatory framework, policymakers in America have been grappling over which agency will control the asset class. Furthermore, the Securities and Exchange Commission and its chair Gary Gensler have taken acted on their own to proclaim that all digital assets aside from Bitcoin are securities. Congress has yet to officially classify them as such, and the uncertainty is causing an exodus of companies, talent, innovation, and capital.
Crypto Market Outlook
Crypto markets remain in consolidation, having gained just 1% on the day. As a result, total market capitalization remains around $1.21 trillion at the time of writing.
Bitcoin prices have barely moved, and the asset was trading for $30,400 during the Friday morning Asian session. It has failed to break resistance at this level but has also yet to pull back again.
Ethereum, which has been weaker recently, was flat on the day at $1,846. The only altcoins showing any progress at the time of writing were Solana (SOL) and Bitcoin Cash (BCH).