The UK Treasury has published a consultation paper on prospective regulation of crypto assets. The paper represents the first stage in the government’s consultative process with industry and stakeholders on the broader regulatory approach to cryptoassets and stablecoins. It seeks views on how the UK can ensure its regulatory framework is equipped to harness the benefits of new technologies, supporting innovation and competition, while mitigating risks to consumers and stability. Beyond looking to establish a baseline legal definition for stablecoins, the Treasury is considering introducing a regulatory regime for “stable tokens” (stablecoins used as a means of payment but excluding algorithmic stablecoins) which would cover firms issuing stable tokens or providing services in relation to them to consumers, directly or indirectly. Responses to the consultation are due by 21 March 2021.