The U.K. plans to draft a regulatory framework for the crypto industry by early next year. This announcement was made by Economic Secretary Tulip Siddiq at a conference, marking the start of the legislative process just as the European Union's new regulations take effect.

Siddiq stated, "We aim to engage firms on draft legal provisions for the crypto asset regime including stablecoins as early as possible next year."

The rules will encompass stablecoins and staking services, putting an end to the prolonged uncertainty surrounding the industry since the last election. The Labour government intends to uphold the prior government's proposals concerning regulated activities and plans for stablecoins, ensuring that they do not fall under the UK's payments regime. Meanwhile, the EU has already instituted similar regulations, set to impact many businesses across its member states.