At the Innovate Finance Global Summit (IFGS) 2025, UK Chancellor of the Exchequer Rachel Reeves took the stage to speak on the Government’s commitment to supporting and advancing the fintech sector.
Reeves discussed UK-US collaboration on fostering an environment primed for digital asset development, new additions to the Pensions Schemes Bill, and supporting growth and competition through sandboxes.
Reeves cited the $3.6 billion investment in UK fintech leadership in 2024, second only to the US. Reeves emphasised the Government’s commitment to driving innovation and ensuring stability in the fintech sector, through introduction of new technologies and
supportive legislation.
UK-US collaboration in digital assets
Reeves announced the publication of draft legislation for the UK’s comprehensive regulatory regime for cryptoassets, and highlighted the significance of international cooperation to support
responsible growth of digital assets.
She said: “When I met senior leaders from across the fintech sector last month, they told me about the importance of getting the balance of regulation right, especially on digital assets, I agree. While the UK will always be committed to high international
standards, I am determined that our regulatory framework supports economic growth.
“That's why I'm delighted that we are today publishing draft legislation for the UK's comprehensive regulatory regimes of crypto assets, engaging with all of you to ensure that the final legislation planned for rates of this year delivers the government
and most importantly, for the industry, and makes the UK a great place for digital asset companies to invest and innovate.”
The regime was proposed by the UK Treasury in October 2023, and followed up with the confirmation in November 2024.
Reflecting on her conversation with Treasury Secretary Scott Bessent and US Securities and Exchange Commissioner Hester Pierce, Reeves mentioned the possibility of a transatlantic sandbox for digital securities, that will connect London to New York in digital
collaboration and capital markets exchange. The move aims to push the UK to becoming a world leader in digital assets.
Yesterday morning, Innovate Finance released a new report through the Digital Pound Foundation defining
the stablecoin regime, highlighting how the UK can become a leader in stablecoin issuance and tokenisation. Innovate Finance CEO Janine Hirt indicated that the report is a starting point for the UK to establish itself as a centre for digital assets and
create a framework for stablecoin usage and issuance by tapping into the potential for growth.
In a panel session called ‘A new world order: geopolitics and fintech’, speaker Sharon Lewis, lead partner for future of finance and co-chair of digital assets and blockchain practice, Hogan Lovells, commented that regulation in the US is propelling European
regulators to move faster.
She posed that the US focus on digital assets is providing a clearer environment on how to move forward in the space, as the US regulators are not cracking down on crypto.
Pension reform and innovative regulation
The Government will soon publish the final
Pensions Investment Review ahead of the Pensions Schemes Bill, which is set to unlock up to £80 billion of investment for startups. Reeves detailed that startups and scaleups will be “delivering a major consolidation of the defined contribution market
and of the local government pension scheme, so that pension funds have sufficient scale and knowledge to invest in growing industries like fintech.”
Highlighting how the UK is innovating regulatory practices, Reeves referred to the FCA implementation of the
Private Intermittent Securities and Capital Exchange System (PISCES), that will legislate next month. The sandbox will support private investment and support startups and growing businesses as they scale.
She added that reforms to the
UK Corporate Governance Code have reduced burdens imposed on public companies. The issuance of the
Digital Gilt Instrument (DIGIT) last November that will increase the industry’s appetite for DLT.
It was also revealed that Reeves’
Financial Services Growth and Competitiveness Strategy will be published after her Mansion House address on 15 June. The Strategy will focus on debt, capital markets, asset management, and insurance. Reeves stated that in the address, she will outline her
platform for economic growth and building a platform on stability and sustainability.
Reeved concluded her speech: “I'm enormously optimistic about the future for the huge growth of the sector that has already taken place; for the passion, the drive, and the commitment that I see from all of you to make fintech a huge UK success story. It
is clear that our job in government is to back you, back the builders, back the changemakers, all of the way. I am ready, this government is ready, to do just that.”