During the Innovate Finance Global Summit, Economic Secretary Bim Afolami revealed that the UK government is gearing up to propose legislation for stablecoins and various crypto-related activities, including staking, exchange operations, and custody services, by June or July.

Afolami emphasized the government's commitment to swiftly deliver the legislation, which will establish the final framework for the regulatory regime. Once enacted, a wide range of crypto asset activities, previously operating outside regulatory boundaries, will fall under the regulatory perimeter for the first time.

The groundwork for this legislative move was laid in June 2023 when the UK passed a groundbreaking financial markets bill. This bill set the stage for stablecoins and crypto assets to be treated as regulated financial activities within the country.

Notably, both the Financial Conduct Authority (FCA) and the Bank of England (BoE) conducted consultations to shape the regulatory landscape for stablecoins. The BoE outlined its intention to oversee stablecoin providers capable of significantly impacting the financial system, while the FCA indicated its role in regulating the broader crypto space.

Afolami hinted at the forthcoming secondary stablecoin legislation back in February, expressing the government's determination to complete the process within six months.

The UK's Conservative Party-led government has expressed its aspiration to establish itself as a crypto hub, seeking to regulate the crypto industry. However, with a looming election later this year, potential political changes could impact the implementation of these plans.

As the Labour party emerges as the current favorite to win, the window of opportunity for executing crypto-related initiatives under the Conservative government may be limited.