The Financial Conduct Authority (FCA) of the United Kingdom has presented its priorities for 2026, with a clear focus on supporting growth, innovation, and technological development in the financial sector. In a letter to Prime Minister Keir Starmer, the FCA highlights plans to finalize rules for digital assets, promote British-issued stablecoins, and strengthen the country's digital financial infrastructure.
The brief describes the supervisory authority's pro-growth agenda, including initiatives to:
Supervision of digital asset markets and provide clear guidelines to crypto companies.
Enable managers to tokenize funds and adopt faster, more efficient payment systems.
Streamline approvals for new and growing companies, improve access to capital, and support competition in the payment and investment markets.
– This recognition of stablecoins and digital financial infrastructure reflects a broader shift towards a more accessible, real-time, and interoperable financial system, says Will Beeson, co-founder of the challenger bank Allica and former head of Standard Chartered's digital assets platform. – Clear regulatory guidelines will help UK companies compete globally and support real use cases for crypto, especially for small and medium-sized enterprises.
The FCA's plans for 2026 also include oversight of the launch of variable recurring payments, support for loans to SMEs through open finance, and further development of fund tokenization. The measures are part of a broader strategy to maintain the UK's position as a leading financial hub through rapid technological change.
UK Chancellor Rachel Reeves and officials in the Treasury have welcomed the FCA's approach, which aims to provide clarity for companies while promoting innovation and maintaining market integrity.
Building on the FCA's initiative for 2026, the government is preparing to incorporate all crypto companies into the existing financial regulation starting in October 2027, with legislation expected to be presented to Parliament soon.
According to Reuters, the bill will largely follow the draft published in April, which addresses rules for crypto exchanges, custody solutions, and issuers of stablecoins. A spokesperson for the Treasury confirms that the aim is to extend the UK's current financial laws to cover crypto, not to create an entirely new regulatory regime.
If the law is passed, it will be an important milestone for the UK's digital assets industry and provide much-needed regulatory clarity to both national and international players.
The UK is adapting to an American-like regulatory approach.
By integrating crypto companies into the existing regulatory framework for financial services, the UK is following an approach similar to that in the USA. This differs from the EU's Markets in Crypto-Assets (MiCA) regime, which was specifically created for the crypto industry and came into effect earlier this year.
Under the proposed framework, crypto companies must adhere to standards that already apply to traditional financial institutions, including rules on governance, consumer protection, and market integrity.
Chancellor Rachel Reeves emphasizes that the goal of the law is to provide 'clear traffic rules' for the industry and keep 'dubious actors' out of the market.
Industry players have welcomed the clarity that the FCA prioritizes in 2026 and the upcoming legislation for 2027. However, experts warn that too much regulation could lead innovative companies to seek other markets.
– These measures are positive steps to strengthen the UK's position within global digital finance, says Will Beeson. – But regulators must balance control with flexibility to avoid stifling growth in a rapidly changing market. Proportionality and pace will be crucial for companies to adapt without being pressured into an 'overnight upgrade.'
