Ex-Chancellor Warns UK Getting ‘Left Behind’ in Crypto Regulation Race
British politician and former Chancellor of the Exchequer George Osborne recently cautioned in a Financial Times op-ed that Britain faces the risk of becoming irrelevant in the emerging crypto revolution. He drew parallels between the current stakes and the transformative Big Bang reforms of the 1980s, urging Chancellor Rachel Reeves to formalize stablecoin regulations through legislation.
Osborne criticized regulators for excessive caution, dismissing the Bank of England’s hesitancy as a weak justification for Britain falling behind competitors like the US, EU, Singapore, Hong Kong, and Abu Dhabi.
Osborne’s push for clear crypto rules in the UK
George Osborne, who held the position of Chancellor of the Exchequer from 2010 to 2016 and now serves on Coinbase’s global advisory council, has dismissed proposals for tokenized deposits as inadequate.
He is calling on Chancellor Rachel Reeves to emulate the US Congress’s Genius Act by implementing a clear and comprehensive legal framework for cryptocurrencies and stablecoins.
In his argument, Osborne invokes Britain’s historical financial leadership, stating that its past success was rooted in a willingness to embrace innovation rather than shy away from it.
The Treasury insists it will publish “robust rules around crypto” this autumn to boost fintech growth and protect consumers. At the same time, the Bank of England has begun exploring modest returns on stablecoin reserves.
Yet Governor Andrew Bailey remains skeptical, warning that any stablecoin “must meet a test of money” by maintaining a strict parity with the British pound.
Osborne also calls out Britain’s low commercial appeal. Several UK stablecoins failed to launch after 2023 regulations were introduced, which imposed mandatory full central bank backing — a requirement that proved commercially unviable. In contrast, US dollar-linked stablecoins continue to dominate the $250 billion global market, accounting for 99% of its value.
Why the UK can’t delay crypto reform
Digital asset experts have echoed George Osborne’s calls for swift regulatory action, warning that delays could cost the UK its competitive edge.
Mark Aruliah, Head of EMEA Policy at blockchain analytics firm Elliptic, emphasized the critical importance of timing, criticizing government inertia while pointing to established legal frameworks in the US and Singapore as models worth emulating.
The industry’s push for reform has gained further weight as former policymakers transition into digital finance roles.
Philip Hammond, another former Chancellor of the Exchequer, who now serves as chairman of crypto infrastructure provider Copper, lends further credibility to arguments for progressive regulation in the UK.
While acknowledging progress in anti-money laundering oversight, Keith Grose of Coinbase UK maintains that British regulators must capitalize on their opportunity to refine crypto rules by learning from the experiences of other jurisdictions. The concept of a “second-mover advantage” only holds if authorities implement lessons quickly and effectively, he argues.
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