Main Points:
- Former UK Chancellor George Osborne warns the UK is losing ground in digital assets, especially stablecoins.
- USD-backed stablecoins dominate a $230 billion market; GBP remains sidelined.
- Coinbase’s “Everything Is Fine” ad satirizes UK economic woes and financial system risks.
- US advances the “GENIUS Act” to bolster dollar-backed stablecoins; UK regulatory action lags.
- Coinbase spent $3.88 million lobbying in DC in 2024 and is shifting focus to Westminster.
- Ongoing lobbying spend has grown from $2.92 million in 2023 to $1.16 million so far in 2025.
Introduction
In a scathing op-ed for the Financial Times, George Osborne—former UK chancellor and current Coinbase advisor—asserted that the UK has not only missed its opportunity to lead in the fast-evolving stablecoin sector but is now trailing well behind its peers in the US, EU, and Asia. His piece underscores the urgency for the UK to reinvigorate its approach to digital assets, or risk ceding ground in what has become a cornerstone of blockchain-driven financial innovation.
UK Falling Behind in Stablecoin Innovation
Osborne highlights that while stablecoins—on-chain representations of fiat currencies—promise to reduce friction in payments and cross-border transfers, the UK has yet to implement a clear regulatory framework or policy incentives to foster their growth. He praises London’s historical embrace of financial innovation but warns that “the pioneering spirit has dimmed,” and without decisive action the UK risks seeing its sterling relegated to a spectator role in the multi-trillion-dollar digital asset economy.
The Dominance of USD in the Stablecoin Market
Although the global stablecoin market exceeds $230 billion as of mid-2025, over 99% of that capitalization is tied to USD-pegged tokens, leaving the GBP behind despite its position as the world’s fifth-largest trading currency.
Insert Figure 1 here: Pie chart of top 5 stablecoins by market cap
The top five stablecoins by market cap are:
- Tether (USDT): $164.702 billion (≈ 66.6%)
- USD Coin (USDC): $63.853 billion (≈ 25.8%)
- Ethena USDe (USDe): $9.508 billion (≈ 3.8%)
- Sky Dollar (USDS): $4.875 billion (≈ 2.0%)
- Dai (DAI): $4.331 billion (≈ 1.8%)
This overwhelming USD dominance underscores the challenge for any non-dollar stablecoin—let alone one pegged to GBP—to gain traction in global DeFi, remittances, and payments networks.
Coinbase’s Bold Advertising Campaign
Shortly before Osborne’s op-ed, Coinbase released its satirical “Everything Is Fine” musical ad in the UK, lampooning the country’s cost-of-living crisis and perceived economic stagnation. The film’s tagline—“If everything is fine, why change anything?”—drives home Coinbase’s message that a refresh of the financial system, potentially via crypto and stablecoins, is overdue.
The US Legislative Push: The “GENIUS Act”
In Washington, the Senate and House have advanced the “GENIUS Act” (H.R. 4763/S. 2669), which sets the first comprehensive standards for payment stablecoins and is poised to become law once President Trump signs it. This legislative momentum starkly contrasts with UK inaction: Osborne warns that without a similar regulatory catalyst, the pound will remain on the sidelines of digital-asset innovation.
Lobbying: From Washington to Westminster
Coinbase has been a heavyweight in US crypto lobbying for years. In 2023 it spent $2.92 million, rising to $3.88 million in 2024. So far in 2025, it has invested $1.16 million lobbying US lawmakers, and it is now redeploying resources to influence UK policy—an effort underscored by Osborne’s public critique.
Insert Figure 2 here: Bar chart of Coinbase lobbying spend by year
| Year | Lobbying Spend (USD millions) |
|---|---|
| 2023 | 2.92 |
| 2024 | 3.88 |
| 2025 YTD | 1.16 |
This uptick from 2023 → 2024 represents a 33% increase in US lobbying spend, demonstrating Coinbase’s escalating commitment to shaping crypto regulations. The pivot to UK lobbying aims to ensure that the regulatory environment there does not stifle stablecoin innovation or relegate Coinbase to a minor role in Europe’s digital-asset markets.
Implications for Investors and Market Opportunities
For crypto investors and blockchain practitioners seeking the next opportunities, the UK’s regulatory trajectory will be a key signal. Should London enact stablecoin-friendly legislation—akin to the US “GENIUS Act”—GBP-pegged tokens could emerge to serve UK-centric payments, DeFi, and tokenization use cases. Conversely, continued delay risks reinforcing USD-dominance, limiting alternative stablecoin development and associated yield-generating strategies.
Conclusion
George Osborne’s critique and Coinbase’s aggressive lobbying and advertising signal a pivotal moment: regulators worldwide are being challenged to craft frameworks that balance innovation, consumer protection, and financial stability. With the US leading through the “GENIUS Act” and the EU advancing MiCA rules, the UK must decide whether to reassert its fintech leadership or watch as stablecoin innovation coalesces around other major economies. For market participants, the coming months in Westminster will be as consequential as Capitol Hill was for the future of digital-asset finance.
