UK Reverses Stablecoin Regulation Exclusion, Could Affect Tokenized Payment Costs

The UK government will bring stablecoins into the payments regulatory perimeter, reversing its November 2024 decision not to regulate them in this context. This announcement, made by Economic Secretary Lucy Rigby at the House of Lords Financial Services Regulation Committee, reinstates a policy first proposed in 2022 by the previous Conservative administration. The new stance could lead to a unified regulatory framework for both traditional and tokenized payments. A consultation on the policy is expected by the end of Q2 2026.