UK Lifts Ban on Crypto ETNs as Market Matures

The move proves the UK’s growing market maturity and is a major step toward integrating digital assets into the country’s financial ￰0￱ tax rules also enable crypto ETNs to be included in pension schemes and ISAs. Meanwhile, in the US, Representative Bryan Steil confirmed that the CLARITY Act is still on track despite the ongoing government ￰1￱ is optimistic that lawmakers could still pass the bill once operations ￰2￱ ETNs Return to UK The United Kingdom officially lifted its ban on crypto exchange-traded notes (ETNs). This is a huge toward the mainstream integration of digital assets in the country’s financial ￰3￱ Financial Conduct Authority (FCA) announced on Wednesday that retail investors can now access crypto ETNs through FCA-approved exchanges, which is a reversal from a restriction that was in place since January of ￰4￱ ETNs are debt-based financial instruments that allow investors to gain exposure to cryptocurrencies without directly owning the underlying ￰5￱ products trade like traditional securities, with the crypto held securely by regulated ￰6￱ from the FCA The FCA said the decision was made thanks to the market’s growing maturity and the regulator’s better understanding of digital asset products.

“Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood,” said David Geale, the FCA’s executive director of payments and digital finance. “In light of this, we’re providing consumers with more choice, while ensuring there are protections in place.” When the FCA first imposed the ban in 2021, it pointed to the risks associated with crypto volatility, market manipulation, and a lack of legitimate investment need. However, the tone shifted after the UK government moved to establish a clearer and more inclusive framework for digital ￰7￱ regulator explained that while crypto ETNs are now available to retail investors, its separate ban on crypto derivatives is still in force, as they are still seen as too risky for the general ￰8￱ government also introduced new tax rules for crypto ￰9￱ Oct. 8, these products can be included in registered pension schemes, and from April 2026, they will also be eligible for Stocks & Shares Individual Savings Accounts (ISAs), giving UK citizens tax-efficient options to invest in crypto-linked ￰10￱ of a statement from the UK Government A report by IG Group forecasts that the UK crypto market could expand by up to 20% after this regulatory ￰11￱ firm’s research found that 30% of UK adults would consider investing in crypto via ETNs, largely because of the perceived safety and regulatory oversight these products ￰12￱ Act Still on Track In the US, Wisconsin Representative Bryan Steil reassured people that Republicans still plan to pass the CLARITY Act — the crypto market structure bill — before 2026, despite the ongoing US government ￰13￱ an interview with CNBC on Wednesday, Steil said the timeline for establishing clearer regulations for the digital asset industry is still on ￰14￱ is optimistic that once the shutdown ends, lawmakers could “hit the ground running” and move the bill forward in the ￰15￱ is one of the original cosponsors of the CLARITY Act, and explained that if the Senate adopts the House version of the bill as its base text, there is still a real chance it could be signed into law by the end of the ￰16￱ interview with Representative Bryan Steil His comments came as the Senate failed to pass a stopgap funding measure, which extended the government shutdown to its eighth ￰17￱ lapse in funding forced many federal agencies to scale back operations, furlough employees, and disrupt air travel, raising concerns about the impact on financial regulators and pending crypto-related ￰18￱ House passed its version of the CLARITY Act in July as part of the Republican-led “crypto week,” to create a comprehensive framework for digital assets and provide what lawmakers called “regulatory clarity” for the industry.

However, progress slowed after the bill reached the Senate, where Wyoming Senator Cynthia Lummis previously pledged that the banking committee will vote on related legislation by the end of ￰19￱ plans were delayed thanks to political ￰20￱ the shutdown, Congress is still in session and lawmakers are also still to be paid, but legislative activity has been severely ￰21￱ Mike Johnson said the House will not reconvene until the Senate passes a bill to reopen the government. meanwhile, the US Securities and Exchange Commission (SEC) is operating with “an extremely limited number of staff” under a contingency plan from ￰22￱ of cryptocurrency-linked exchange-traded fund (ETF) applications are likely paused, though the SEC’s electronic systems are functional for ￰23￱ Steil is confident that bipartisan cooperation could still bring the CLARITY Act across the finish line, the shutdown added some uncertainty to the timeline.