Regulatory Update: Legal Clarity for Digital Assets
On 16 July, the UK Parliament debated the Property (Digital Assets etc.) Bill, a short but powerful piece of legislation that could reshape the future of finance. The Bill confirms that digital assets, such as cryptoassets, stablecoins, and tokenised securities, can be legally recognised as property under English law.
This change unlocks a range of possibilities: digital assets can now be used as collateral, included in estates, and protected under laws governing theft and fraud. Most importantly, they can be cleared and settled with legal finality, something that’s essential for building a trustworthy digital asset market.
For ClearToken, this is a major milestone. It validates our long-standing belief that digital assets deserve the same legal treatment as traditional financial instruments. Our work in the Bank of England’s Digital Securities Sandbox and our development of a Delivery versus Payment (DvP) settlement system are built on this very principle.
Look out for the next chapter of our white paper “The Case for a Central Securities Depository for Digital Assets: The Future of Finality” which explores this topic in more detail.
Cross-Border Progress: UK’s Recognition Regimes Guidance
The UK Government has also published a new Overseas Recognition Regimes Guidance Document, which outlines how overseas jurisdictions can be recognised for financial services. This is a big step forward for firms operating in global markets.
The guidance promotes interoperability, reduces duplication, and supports trust across borders—exactly what’s needed to build scalable infrastructure for digital finance. It’s a clear signal that the UK is serious about creating a modern, open financial system that can adapt to the pace of innovation.
ClearToken strongly supports this direction. The emphasis on transparency and ongoing monitoring is especially welcome for firms like ours working in fast-evolving digital environments.
Leeds Reforms
The UK’s Leeds Reforms, announced at Mansion House 2025, are a major step forward for financial market innovation, and a clear boost for ClearToken’s mission.
The government is backing the rollout of tokenised financial assets and digital post-trade processes. It’s also launching new tools like the Digital Gilt Instrument (DIGIT) to help different systems work together more smoothly. This is exactly the kind of infrastructure ClearToken is building: a neutral layer that connects traditional markets with tokenised ones.
Importantly, the Chancellor has asked the Bank of England to actively support new financial market infrastructure providers, particularly CCPs and CSDs, like ClearToken. As a result, The Bank has now announced a new streamlined authorisation process, reduced some unnecessary red tape, and made innovation a formal part of its regulatory approach.
For ClearToken, this means faster recognition, clearer rules, and a regulatory environment that understands the future we’re building toward. These reforms don’t just support our growth, they show that the UK is serious about creating the conditions for a modern, interoperable financial system.
Sasha Mills (BoE) on Building Tomorrow's Digital Markets
At City Week 2025, Sasha Mills of the Bank of England delivered a keynote that strongly aligns with ClearToken’s mission. She called for a “mixed ecosystem” where traditional and digital infrastructures interoperate to avoid fragmented liquidity and reduce settlement risk — a vision that mirrors ClearToken’s role as a neutral clearing and settlement layer bridging legacy and tokenised markets.
Crucially, she announced the Bank will soon publish a risk-based, proportionate framework for onboarding new FMIs — a move that builds on the Digital Securities Sandbox and signals long-term regulatory support for innovation. This new framework applies to ClearToken and allows for a more phased authorisation process to allow start-ups like ClearToken to scale.
ClearToken welcomes this direction. It validates our approach and reinforces the UK’s commitment to building the infrastructure needed for the next generation of financial markets.
US Regulatory Shift: SEC and CFTC Align on Spot Crypto Trading
In the US, the SEC and CFTC have issued a joint statement confirming that registered exchanges are allowed to facilitate spot crypto asset trading. This is a significant move that opens the door to more competition, innovation, and venue optionality in the American market.
It’s more than just regulatory clarity, it’s a structural shift that aligns with what we’re seeing globally, from MiCA in Europe to the UK’s digital asset legislation. For ClearToken, this validates our approach to building institutional-grade infrastructure for digital assets.
We’re already working with exchanges to align with this new framework and ensure our DvP settlement system is ready to support compliant, high-integrity market structures.
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