Crypto firms urge UK to form national stablecoin strategy to avoid falling behind U.S.

The U.K. should establish a national stablecoin strategy to enable adoption of the tokens and avoid falling behind the U.S. on the disruptive new technology, several major crypto firms said Wednesday. In an open letter addressed to Finance Minister Rachel Reeves, 30 crypto industry figures said that the U.K. "must act now to avoid being a rule-taker rather than a rule-maker in the digital asset era." "To ensure the UK is at the forefront, we believe a proactive, coordinated national strategy is needed - one that positions stablecoins not as a risk to be contained, but as a financial infrastructure to be responsibly embraced," the letter said. The U.K. Treasury department was not immediately available for comment when contacted by CNBC. Stablecoins are a type of cryptocurrency that is pegged to an existing government-backed currency. There are several stablecoins in issuance, however the most commonly known are Tether's USDT and Circle's USDC — both of which are tied to the U.S. dollar.