New regulatory powers Digital settlement assets
Cryptoassets are a digital representation of value or contractual rights that can be transferred, stored or traded electronically, which may (though do not necessarily) utilise cryptography or distributed ledger technology. No internationally agreed definition, taxonomy or classification currently exists.
	In January 2021, HM Treasury launched a consultation and call for evidence on the UK’s regulatory approach to cryptoassets. This sought views on how the government and regulators can ensure that the UK’s regulatory framework is equipped to harness the benefits of new technologies, supporting innovation and competition, whilst mitigating risks to consumers, market integrity and financial stability.
	This consultation proposed a staged and proportionate approach to regulation, which is sensitive to risks posed and responsive to new developments in the market. In particular, it highlighted that certain forms of cryptoassets, known as "stablecoins" had the potential to develop into a widespread means of payment, and potentially deliver improvements for payment transactions.
	HM Treasury’s response to the consultation , published in April 2022, outlined the government’s intention to bring stablecoins, where used as a means of payment, into the regulatory perimeter.