The UK Financial Conduct Authority (FCA) has detailed its priorities for 2026, highlighting a strong push to support growth, innovation, and technological adoption in the financial sector. In a letter addressed to Prime Minister Keir Starmer, the FCA emphasized plans to finalize rules on digital assets, advance on stablecoins issued in the UK, and strengthen the country's digital finance infrastructure.
The letter details the regulatory authority's pro-growth agenda, which includes initiatives for:
Supervise digital asset markets and provide clear guidelines to crypto companies.
Allow fund managers to tokenize funds and adopt faster and more efficient payment systems.
Simplifying authorizations for new and growing businesses, improving access to capital and supporting competition in payment and investment markets.
"This support for stablecoins and digital finance infrastructure reflects a broader transition towards a more accessible, real-time, and interoperable financial system," said Will Beeson, co-founder of the British challenger bank Allica and former head of Standard Chartered's digital asset platform. "Clear regulatory guidance will help UK businesses compete globally and support real-world use cases for crypto, especially for small and medium-sized enterprises."
The FCA's plans for 2026 also include oversight of the launch of recurring variable payments, support for SME credit through open finance, and advancing the tokenization of funds. These measures are part of a broader strategy to maintain the UK's position as a leading financial hub, keeping pace with rapid technological changes.
Chancellor of the Exchequer Rachel Reeves and Treasury officials welcomed FCA's approach, which aims to provide clarity to businesses while fostering innovation and maintaining market integrity.
In the wake of FCA's initiatives for 2026, the British government is preparing to include all crypto companies in the current financial regulatory framework starting in October 2027, with legislation expected to be presented soon in Parliament.
According to Reuters, the bill will largely mirror the proposal published in April, which outlines rules for exchanges, custody providers, and stablecoin issuers. A Treasury spokesperson confirmed that the legislation is intended to extend the current rules of English financial services to the crypto sector, rather than create a new comprehensive regulatory regime.
If approved, the law would represent a significant milestone for the English digital asset sector, providing the long-awaited regulatory clarity to both domestic and international companies.
The UK aligns with the US-style regulatory approach.
By integrating crypto companies into the current financial services framework, the UK adopts a similar approach to the United States. This diverges from the European Markets in Crypto-Assets (MiCA) regime, specifically designed for the crypto sector and which came into effect earlier this year.
With the proposed new framework, crypto companies will need to comply with standards already applied to traditional financial institutions, including governance rules, consumer protection, and market integrity.
Chancellor Rachel Reeves emphasized that the legislation aims to provide "clear rules for the sector" and to keep "unscrupulous operators" out of the market.
Industry insiders welcomed the clarity offered by both FCA's priorities for 2026 and the upcoming legislation for 2027. However, experts warn that excessive regulation could push more innovative companies towards other markets.
"These measures represent positive steps to strengthen the UK's position in global digital finance," said Will Beeson. "But authorities will need to balance oversight with flexibility, so as not to potentially stifle growth in a rapidly evolving market. Proportionality and speed will be crucial to allow companies to adapt without facing an 'upgrade overnight.'"