Crypto ETNs that retail consumers can access must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules will apply so consumers get the right information and are not offered inappropriate incentives to invest.  

David Geale, executive director of payments and digital finance at the FCA, said:

'Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.'

The change will come into force on 8 October 2025.

The product strategy design note outlines the Bank’s thinking on the product strategy for a potential digital pound. It forms part of the design phase and contributes to the development of a blueprint that will inform a future decision on whether to proceed with a digital pound. 

The interoperability models design note sets out the Bank of England’s thinking on interoperability models for a digital pound, where both payer and payee are based in the UK. It does not consider cross-border interoperability models. It explores how "interoperability can support innovation, inclusion, and the singleness of money by enabling seamless exchange between digital pounds, commercial bank deposits, cash, and new forms of digital money." The note outlines three potential models for delivering interoperability, evaluates their trade-offs, and presents a preferred approach. It also shares findings from a technical proof of concept using existing UK payment infrastructure.

Both design notes are exploratory and intended to prompt discussion; they do not represent final policy or design decisions.

This measure gives information about the Cryptoasset Reporting Framework, which provides visibility on the transactions of users of cryptoassets.

The regulations outline:

• the mandatory requirement for registration of reporting cryptoasset providers
• specific penalties for non-compliance.

In a speech  titled “Innovation and Regulation – striking the balance” by David Bailey (18 June 2025) the PRA confirmed its preference for a cautious yet flexible approach to addressing how regulation should deal with banks’ involvement with cryptoassets, highlighting:

• its commitment to implementing the Basel Committee on Banking Supervision standards on the prudential treatment of banks’ exposures to cryptoassets while waiting to see if  its approach can be relaxed over time; as well as
• its desire to ensure that banks that the PRA had previously said should only provide innovations in the form of deposits (for example in tokenised form), can compete openly with non-banks issuing systemic stablecoins.

Andrew Bailey struck a similar note in a speech at the 9^th NBU-NBP Annual Research Conference in Kyiv headed “Central Banking in extreme adversity” in which he made it clear that if there are real benefits in digital technology in payments, then his preference would be for those benefits to be seen in commercial bank money in the form of tokenised deposits.

In his view the UK is well on the way to having wholesale central bank digital money in any event, as a natural step from the wholesale electronic money that the UK has had for thirty years, but he remains unconvinced as to the need for a retail CBDC.

He also made it clear that in relation to stablecoins, whilst he thought it possible for the latter to provide assurance of nominal value and pass the test of singleness of money, many of the current versions do not yet achieve that test, and that the focus should be on developing standards that ensure they do.

The FCA confirmed that financial promotion rules would apply to cETNs in the same way as they do to direct cryptoasset investments. The existing prohibition on retail access to crypto derivatives will remain in place.

The proposal forms part of a wider package of changes included in the FCA’s quarterly consultation paper no. 48 (CP25/16).

The closing date for feedback on the proposal is 7 July 2025. 

The aim of the consultation is to resolve questions relating to international jurisdiction, applicable law, and the recognition and enforcement of foreign judgments, arising from use of electronic trade documents, digital assets and distributed ledger technologies. The consultation paper includes provisional proposals for reform of certain aspects of private international law that apply in this context.

Key points include:

• Jurisdiction: The consultation considers how the existing jurisdictional gateways for property (gateway 9(a)) and tort (gateways 11 and 15(b)) can be applied in the context of crypto litigation. It also notes that the existing gateway for free-standing Norwich Pharmacal and Bankers Trust orders (gateway 25) has not been widely used because claimants are often unable to satisfy the requirement that the information is sought for proceedings commenced or intended to be commenced in England and Wales as they do not know the identity or whereabouts of the perpetrators. There is therefore a proposal to create a new discretionary power of the courts to grant free-standing information orders against third parties in circumstances where it is not yet clear whether substantive proceedings will be initiated in England and Wales.
• Applicable law: The consultation proposes a new "supranational" approach to deal with the "omniterritorial nature" of disputes in relation to digital assets and electronic trade documents. This new approach would no longer require the courts to identify a single applicable law, but to take into account a range of factors to determine a just outcome of the dispute, including the legitimate expectations of the parties.
• Bills of Exchange Act 1882: The consultation also makes proposals for reform of section 72 of the Bills of Exchange Act 1882, which would apply to relevant documents in both paper and electronic form.

Deadline for comments is 8 September 2025.

The Law Commission plans to publish final recommendations in 2026.

The rules will cover, amongst other things, the FCA’s requirements relating to regulatory capital, liquidity and concentration risk. 

The FCA is inviting feedback on its proposals until 31 July 2025. 

See our article UK: FCA consults on a prudential regime for cryptoasset firms.

The draft rules will include amendments to the FCA Handbook (e.g. new chapters 16 and 17 in the Client Assets sourcebook (CASS), and a new Cryptoasset sourcebook (CRYPTO)).  

The FCA is inviting feedback on its proposals until 31 July 2025.

See our article UK: FCA consults on stablecoin issuance and cryptoasset custody rules.