Britain must stop dithering over digital finance
Crypto and stablecoins are now mainstream. The race to set the rules is already on – and it’s being run in dollars, not pounds, says Kulveer Ranger
Last week in Washington DC, I was reminded that while the United States may not have all the answers on digital assets, it is already writing the questions that will define the global debate. From the corridors of the Senate Banking Committee to the offices of the Securities and Exchange Commission, one message was unmistakable: America is setting the tempo on crypto policy, and the world is preparing to dance to its tune.
During my meetings with Ammon Simon, counsel to the Senate Banking Committee, we discussed the rapid progress of the Crypto Market Structure Bill – legislation expected to pass Congress before the end of this year. It is ambitious, practical and, crucially, bipartisan. Section 401 of that bill establishes a cross-border sandbox framework – a regulatory testbed allowing the US and like-minded nations, including the UK, to experiment jointly in this fast-moving space. It’s a simple but powerful idea: shared innovation, shared supervision, shared trust. The Americans are not waiting. They intend to have this sandbox live by 2027-28. It’s a timeline that would make even our most diligent Whitehall taskforces blush.
I also met with SEC Chairman Paul Atkins and Commissioner Hester Peirce, affectionately known as “Crypto Mom” – and with good reason. She has been one of the few regulatory voices in Washington willing to argue that innovation should be given space to breathe. Her February six-point paper, Project Crypto, lays out a thoughtful vision for a rules-based but innovation-friendly future. In her words, the challenge is “not whether we regulate, but how we regulate without strangling the future in its crib.”
This is a sentiment that resonates on our side of the Atlantic. The UK has long prided itself on being both a global financial centre and a hub for technological innovation. Yet as we step beyond the constraints of EU rule-making, Brexit should be our competitive advantage, not a bureaucratic pause button. In Washington, I found a striking appetite for partnership – not competition – between our systems. Ammon Simon described it as “building on the Genius Act”, referring to US legislation designed to foster reciprocal arrangements with trusted jurisdictions. His view, which I share, is that the UK and US have uniquely compatible legal and financial infrastructures. We can – and should – move faster together.
Britain must decide whether it wants to be a rule-maker or a rule-taker in the next era of financial innovation
One meeting that particularly stood out was with Senator Cynthia Lummis, the formidable “Crypto Queen” from Wyoming. She has made it her mission to bring digital assets into the regulatory sunlight, arguing that transparency, not prohibition, is the key to stability. Her message was as friendly as it was challenging: Britain must decide whether it wants to be a rule-maker or a rule-taker in the next era of financial innovation. Senator Lummis’ conviction mirrors what I heard repeatedly across Capitol Hill – that crypto and stablecoins are no longer niche. They are now viewed as strategic instruments of financial competitiveness, and the US intends to lead from the front.
I also had the pleasure of meeting the leadership of The Digital Chamber, the influential K Street trade body that has championed the digital asset sector for over a decade. They kindly made me an honorary member – a gesture that reflects their genuine desire to build transatlantic bridges and work at pace. They are keen to identify UK partners who can match their energy and commitment.
What struck me most, however, was the sense of momentum. There is a clear understanding in Washington that the digital asset debate has moved in the last 12 months from the philosophical and into the operational. They are talking about laws, standards and enforcement – not hypotheticals. The November 22nd bill due before the Senate will lay the groundwork for what could become the global regulatory template by early next year.
Between enthusiasm and hesitation
Meanwhile, the UK remains caught between enthusiasm and hesitation. We have published good consultation papers, convened taskforces and run pilot sandboxes through the FCA – but we have not yet defined our national ambition. We cannot hope to “catch up” with the US on sheer scale, but we can stay in the game by being smarter, faster and more connected.
That requires three urgent steps.
First, we must accelerate our industry engagement. Government and regulators need to be in the room with innovators, not merely reading their submissions.
Second, we should formalise dialogue with US policymakers – through Treasury, the FCA, and Parliamentary committees – to align on cross-border testing environments. The proposal for a cross-border sandbox provides the perfect framework; we should signal early that Britain wants in.
Third, we must be clear about who leads on our side. Responsibility for digital assets currently straddles the Treasury, the FCA, the Bank of England, and the Digital Markets Unit. Coordination is polite, but not purposeful. We need a single voice – a Minister for Digital Finance – empowered to negotiate internationally and act domestically.
As the Prime Minister often says, nations that hesitate become followers. On digital assets, the race to set the rules is already on – and it’s being run in dollars, not pounds.
Yet the UK still holds cards of its own: the City’s financial pedigree, our global legal influence, and a creative fintech ecosystem envied the world over. What we lack is not expertise, but urgency.
When Commissioner Peirce told me, “Innovation doesn’t wait for permission,” she was describing both a challenge and an opportunity. The United States has chosen to lead by legislating. Britain should choose to lead by collaborating – shaping the standards that will govern this new frontier, not simply adopting them.
If we do that – if we engage, connect, and act – then the UK may not catch up with America’s head start. But we will remain in the game – and at the table where the rules of the next financial era are written.
Lord Kulveer Ranger is co-chair of the All Party Parliamentary Group for Digital Markets & Digital Money