Britain will reveal crypto regulation plans in coming weeks, sources say

cnbc.com:

LONDON — The U.K. government will soon reveal plans to regulate the cryptocurrency market, focusing on a fast-growing type of token known as stablecoins, according to four industry sources familiar with the matter.

British Finance Minister Rishi Sunak is expected to make an announcement in the coming weeks about a new regulatory regime for crypto, the sources told CNBC, preferring to remain anonymous as the information hasn't yet been made public.

The Treasury declined to comment when asked about the plans by CNBC.

Details of the plans are still being finalized, however sources who spoke to CNBC say they are likely to be favorable to the industry, providing legal clarity for a sector that has so far been mostly lacking in regulation.

According to the sources, Treasury officials have shown a willingness to understand the complexities of the crypto market and so-called stablecoins, digital assets that derive their value from existing currencies like the U.S. dollar.

The department has been in discussions with a number of firms and trade groups. That includes the Winklevoss brothers' crypto exchange Gemini, one of the sources said. Gemini issues its own stablecoin called the Gemini dollar, which is pegged to the U.S. dollar.

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Stablecoins have seen exponential growth in terms of usage over the past few years, in tandem with rising interest in cryptocurrencies more broadly. Tether, the world's largest stablecoin, now has a total circulating supply of more than $80 billion — up from about $4 billion two years ago.

But