Chancellor of the Exchequer Rishi Sunak is expected to make an announcement in a matter of weeks about a new regulatory regime for cryptocurrencies. While details of the plans are still in the works, sources who spoke to CNBC say the plans are likely to be favourable to the industry and will provide the sector with increased legal clarity. 

Treasury officials have reportedly shown a readiness to comprehend the complex nature of the crypto market and stablecoins, with the department having held discussions with several firms and trade groups. 

The move by the Treasury is largely being viewed as a response to US President Joe Biden’s new executive order calling for coordination from various federal agencies on regulatory cryptocurrencies. 

Experts have described the White House’s move as “long overdue” and “extremely positive.”