The UK’s Financial Conduct Authority (FCA) has set out an expansive pro-growth agenda that includes finalising crypto rules, advancing sterling stablecoins, and reducing regulatory burdens for firms. In a letter dated 9 December 2025 to Prime Minister Keir Starmer and senior ministers, FCA Chief Executive Nikhil Rathi said most of the regulator’s January growth commitments have already been delivered, with further reforms planned for 2026.
Rathi framed growth as central to the government’s strategy to 2030, arguing that regulation must increasingly focus on outcomes rather than prescriptive rules. He said the FCA is adapting its supervisory approach to better support innovation, even if that means accepting that some things will go wrong while prioritising the most serious harms.
Crypto, stablecoins and digital finance
The FCA confirmed that during 2025, it consulted on a proportionate regime for digital assets and lifted the retail ban on crypto exchange-traded notes (cETNs). Looking ahead, the regulator plans to finalise digital asset rules and move forward with UK-issued sterling stablecoins in 2026, signalling a more comprehensive framework for crypto markets and payments innovation.
The letter also highlights progress on digital securities and payments infrastructure. Sixteen applicants have been accepted into the digital securities sandbox, while a stablecoin-specific cohort has been launched within the FCA’s regulatory sandbox. The regulator also confirmed that the first day of trading under a T+1 settlement standard is now set for 11 October 2027, aligning the UK more closely with global markets.
Rathi said the FCA will oversee the launch of variable recurring payments in 2026, giving consumers more control over regular payments and increasing competition in retail banking. A delivery plan for open finance will also be set, with a focus on improving access to credit for small and medium-sized enterprises.
Cutting red tape and supporting firms
Beyond digital finance, the FCA emphasised efforts to reduce regulatory burdens. In 2025, it removed or streamlined data requests for around 36,000 firms and introduced a machine-readable handbook. According to the regulator, these changes could save firms up to £100 million a year in compliance costs.
The regulator also reported faster authorisation times, with 99.5 percent of cases processed on time, and expanded pre-application support for wholesale, crypto, and payments firms. More than 200 firms were told the FCA was “minded to approve” their applications, providing earlier certainty for growing businesses.
Looking ahead, the FCA plans to speed up IPO applications by proposing the removal of the seven-day research waiting period and preparing to allow some early-stage firms to conduct limited regulated activities before full authorisation, subject to legislation.
Payments, AML, and digital ID
Rathi also pointed to structural changes in financial supervision. The consolidation of the Payment Systems Regulator into the FCA is well advanced, supporting delivery of the government’s National Payments Vision. Ahead of legislation, the FCA is preparing to become the anti-money laundering supervisor for professional services, a move it says is essential to maintaining trust and market integrity.
The letter highlights digital identity as another priority area. Rathi said faster progress on digital ID could streamline know your customer requirements and further benefit firms and consumers, while calling for quicker legislative reform of outdated frameworks such as the Consumer Credit Act.
Overall, the FCA’s message to government is that regulatory reform, particularly in digital finance and crypto, is now tightly linked to the UK’s growth ambitions. The coming year will test whether the promised crypto rules, stablecoin framework, and lighter-touch supervision can deliver innovation without undermining financial stability.