The UK is at risk of ceding digital asset leadership to the United States unless it establishes a coherent, whole-of-government strategy for crypto and emerging technologies, according to Lord Chris Holmes.
Speaking in an interview with Yellow.com, the long-time advocate for digital inclusion and technology policy said the country has taken “positive steps” but has yet to articulate a national vision that stretches beyond financial services.
Holmes argued that the absence of a unifying framework has weakened public discourse and slowed regulatory progress.
“The minute that discussion reduces to Bitcoin (BTC)-yes or Bitcoin-no, we lose sight of the broader opportunities,” he said, noting that issues such as energy, mobility, climate policy and public service modernization seldom include digital asset considerations despite their relevance.
A Missing National Strategy
Holmes said that although the Treasury, FCA and PRA are moving forward with consultations on stablecoins and market structures, the UK lacks clarity on how blockchain and digital finance fit across government departments, from defense to education to local authorities.
This gap, he said, prevents the UK from presenting a competitive alternative to jurisdictions such as the US, Singapore, Japan and the UAE.
“There’s a risk for any nation that they could fall behind the United States because of how these areas are being led right from the heart of the White House.”
What is needed, he argued, is a government-wide articulation of objectives backed by public engagement.
Without it, the UK risks allowing U.S. stablecoins to dominate by default.
He noted that perceptions of UK regulatory delay are often exaggerated, but perception alone can deter investment and talent.
Regulation And Innovation Can Coexist
Holmes challenged the belief that regulation impedes innovation, using the UK’s fintech sandbox and open banking framework as examples of regulatory interventions that became global models.
He said the UK’s common-law system is well-suited to principles-based rules that remain durable as technology evolves.
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He identified four pillars - clarity, consistency, certainty and coherence - as the foundation the UK must uphold.
“Who would want to invest into a market that has absolutely no rules at all?” he said. Right-sized rules, he argued, enable investor protection, innovation and market growth simultaneously.
Public Benefit And Digital Identity
Holmes reiterated that blockchain should be deployed to reduce risk in areas such as supply chains, public services and digital identity.
He cited his longstanding work on inclusive technology design and said a decentralized, self-sovereign digital ID framework would empower citizens while reducing fraud and administrative burden.
For DeFi, he recommended principles rooted in trust, transparency, inclusion and accountability, applied consistently rather than through fragmented policy measures.
“Principles-based, outcomes-focused, inputs understood” is the model he believes should span blockchain, AI and all emerging technologies.
A Narrow Window Of Opportunity
Holmes said the UK is not yet behind the US or EU, but risks falling so without coordinated leadership from the center of the government.
“There’s a real opportunity for any nation, including the UK, to carve out a positive approach,” he said.
He urged founders to engage directly with policymakers and regulators, calling their participation essential rather than optional.
“Regulation isn’t a barrier,” he noted, “but there needs to be clarity. Your voice matters.”
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