UK Stablecoins Lag as GENIUS Act Reshapes US Crypto

- Osborne warns UK risks losing global relevance to U.S. stablecoin leadership. - GENIUS Act enforces strict standards, while UK regulation remains stalled. On August 4, 2025, the Financial Times published an op-ed by former UK Chancellor George Osborne, now an adviser to Coinbase, in which he accused the United Kingdom of falling behind in stablecoin regulation. Osborne warned that the UK’s sluggish approach threatens the pound sterling’s position in global finance. Meanwhile, the United States is advancing legislation like the GENIUS Act to cement its dominance in the cryptocurrency sector. Osborne’s critique, amplified by multiple outlets, highlighted the UK’s failure to embrace financial innovation as it had in the past. Stablecoins—digital currencies pegged to fiat currencies such as the pound or dollar—are increasingly shaping new financial systems. Osborne pointed to the GENIUS Act, signed into law on July 18, 2025, as a clear example of U.S. progress. The Act enforces strict 1:1 reserve requirements, consumer protections, and licensing standards for stablecoin issuers. Osborne argued these steps strengthen the dollar’s leadership while leaving the UK “completely behind.” In parallel with Osborne's warnings, Coinbase escalated its UK lobbying with a satirical ad titled “Everything Is Fine.” Major UK television networks banned the campaign, which depicted economic struggles like soaring food prices and housing costs, hinting that cryptocurrency could offer solutions. Although Coinbase CEO Brian Armstrong expressed disappointment over the ban, the campaign aligns closely with Osborne’s call for increased regulatory innovation. Together, these actions underline a coordinated push for change in the UK’s cryptocurrency approach. The UK government and regulatory bodies have taken incremental steps toward stablecoin regulation. In May 2025, the Financial Conduct Authority (FCA) proposed rules for stablecoins that require issuers to fully back the coins with secure assets and ensure they are redeemable at their face value. However, industry groups voiced concerns that rigid regulations could stifle investment in UK-based stablecoin firms. The government announced its intent to regulate crypto-assets in November 2024 but notably excluded stablecoin payments from the regulated payments system, a decision many see as a missed opportunity to drive growth and innovation. According to CoinMarketCap data from August 4, Tether USDt (USDT) was trading at $1 as of 18:08 UTC, with a 0.006% 24-hour volume change.