UK Scrambles to Catch Up as U.S. Sets the Stablecoin Standard
The United Kingdom is rushing to advance its stablecoin strategy, aiming to position itself as a hub for digital assets. Policymakers in London argue that the country can benefit from a “second-mover advantage,” studying international frameworks before finalizing its own. But in reality, this scramble reflects something far more pressing: the need to catch up with the United States, which has decisively taken the lead in global stablecoin regulation.
The U.S. First-Mover Edge
In July 2025, the U.S. passed the GENIUS Act, the first comprehensive federal law governing payment stablecoins. The legislation requires full dollar or low-risk asset backing and establishes a dual federal-state oversight model. By acting swiftly, the U.S. has given issuers, investors, and regulators the one thing they’ve lacked for years—clarity.
This speed has created momentum that other jurisdictions are now struggling to match. While the UK continues to release consultations and frameworks in draft form, the U.S. is already moving ahead with implementation and industry integration.
Why the U.S. Lead Matters
America’s leadership is already producing ripple effects:
Financial Institutions are adapting quickly. Goldman Sachs has called this the “Summer of Stablecoins,” noting their potential to strengthen rather than disrupt traditional finance.
Treasury Strategy is evolving. Stablecoins are being positioned as a new channel for global demand for U.S. Treasurys, reinforcing the dollar’s central role in world markets.
Industry Response has been immediate. Major issuers are aligning with the GENIUS Act framework, hiring seasoned policymakers to navigate the new environment.
Meanwhile, the Federal Reserve is signaling a more collaborative tone. Vice Chair Michelle Bowman recently urged regulators to embrace innovation in crypto and blockchain rather than fear it. This marks a profound cultural shift: Washington is no longer hesitating, but actively shaping the rules of the game.
A Global Domino Effect
Europe has accelerated its digital euro timeline, and other financial centers from Singapore to Abu Dhabi are adjusting their strategies. The U.S.’s bold first move has effectively reset the global clock, forcing other regions to respond on America’s terms.
Why the UK Risks Falling Behind
For all its ambitions, the UK risks being defined by hesitation. Draft rules and delayed timelines may buy policymakers time for study, but they also create uncertainty for innovators. The longer the gap persists, the more likely that capital, talent, and infrastructure will flow to jurisdictions—like the U.S.—that offer clarity today.
Final Thoughts
The UK may yet develop a strong regulatory regime for stablecoins, but the global story has already been written: the U.S. acted first, and in doing so, it set the standard. This is more than a policy milestone—it is a strategic declaration.
America isn’t reacting to global innovation. It is driving it.