If this becomes law as expected, it will grant the FCA powers to regulate stablecoins and certain types of digital assets which are currently unregulated. It is also the largest digital asset sector in Western Europe by transaction volume ($233 billion between July 2021 and June 2022). We have three key recommendations for the UK government’s approach to the digital asset sector, which can help foster high-quality, sustainable growth. Deliver a proportionate regulatory framework underpinned by clear prioritiesThe digital asset industry has long asked the UK government for regulatory clarity. The UK is at an inflexion point and must take action now to realise its ambition to become a digital asset hub.