Financial Services and Market Bill Gets Introduced in U.K. Parliament
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Although stablecoin regulation was always intended to be a part of the bill, some observers were worried about its future in light of the recent turmoil in the cryptocurrency market and the departure of pro-crypto members of the government earlier in July, including Rishi Sunak's predecessor John Glen and Economic Secretary to the Treasury.
Financial Services (Banking Reform) Act of 2013
The measure extended the Banking Act of 2009 and the Financial Services Act. The Banking Act of 2009 and the Financial Services (Banking Reform) Act of 2013 were expanded to include "digital settlement assets" (DSAs) by the law. It gave the Treasury the authority to control DSAs, payments made with DSAs, service providers for DSAs, and DSA insolvency plans. The Financial Conduct Authority (FCA), the Bank of England, and other regulators will be consulted as necessary during the creation of such regulations.
Jon Cunliffe, the deputy governor for financial stability at the Bank of England, has a history of being skeptical of cryptocurrencies and has consistently argued for further regulation of the industry. In a lecture on July 12, he compared the present cryptocurrency regulatory environment to "unsafe aeroplanes," citing notably the demise of Terra (LUNA), now known as Terra Classic (LUNC). The FCA-registered businesses offer cryptocurrency services. For many competitors, getting that registration has proven to be complicated.
