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UK to Cooperate With Crypto Industry on Legislation for Digital Securities
The government said its plans for a digital securities sandbox (DSS) were largely welcomed by respondents.
Updated Mar 8, 2024, 7:00 p.m. Published Dec 20, 2023, 5:21 p.m.
The U.K. government said it plans to continue working with the financial services and technology industries to establish the legislation needed to pave the way for digital securities as it pursues its goal of becoming a hub for the crypto industry.
The design of a planned digital securities sandbox (DSS) that lets companies test new products with real customers under regulatory supervision was generally welcomed by respondents to a consultation distributed in July, the Treasury said Wednesday. Many respondents emphasized the need for the rules within the sandbox to remain flexible so it can adapt to novel use cases. They also asked for more clarity about tax treatment within the sandbox.
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The DSS will be overseen by the Bank of England and the Financial Conduct Authority, according to draft legislation published Monday. It will allow businesses to test the distributed ledger technology that powers crypto to digitize or tokenize traditional securities and represent them on a blockchain. The government said it planned to include assets including debt, equity and money-market instruments within the scope of the sandbox, something respondents had requested.
"The government will work with the regulators and industry to identify any further legislative provisions that need to be brought into scope, and if necessary can facilitate this via further statutory instruments amending the DSS," the consultation response said.
Read more: UK Treasury Starts Consultation on Five-Year Digital Securities Trial
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- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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U.S. SEC Gives Implicit Nod for Tokenized Stocks
Clearing and settlement company the Depository Trust & Clearing Corp. said a subsidiary had received a no-action letter to offer tokenized real-world assets.
What to know:
- The Depository Trust & Clearing Corp. said on Thursday that a subsidiary received a no-action letter from the U.S. SEC on offerings of tokenized real-world assets.
- The letter implicitly grants approval for the offering of certain tokenized stocks on approved blockchains for three years.
- The authorization applies to the constituents of the Russell 1000 index and exchange-traded funds tracking major indexes and U.S. Treasuries.
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