The UK Treasury has ruled out creating a national crypto reserve, distancing itself from the direction the U.S. appears to be heading.
Speaking at the Financial Times Digital Asset Summit in London on Tuesday, Economic Secretary to the Treasury Emma Reynolds MP stated,
“We don’t think that’s appropriate for our market. We understand that’s what the U.S. is going for, but that’s not the plan for us.”
This decision comes amid growing alignment between the UK and the U.S. on broader crypto regulation.
The Crypto Reserve Idea Not a Good Fit
Just last week, UK Chancellor Rachel Reeves met with U.S. Treasury Secretary Scott Bessent in Washington, D.C. to establish a senior-level working group focused on digital assets. Reynolds emphasized the importance of “collaboration and cooperation,” noting that the upcoming “regulatory forum” set for June aims to synchronize regulatory approaches between the two nations.
“We understand that some of this stuff is a little bit amorphous,” she said, recognizing the difficulties posed by truly decentralized systems.
MiCA? Mind the Gap
Britain is carving a different path from the EU. While the bloc has embraced the detailed MiCA framework, the UK is sticking to its traditional legislative style, which is less prescriptive and more outcome-based.
Reynolds said, “We decided not to go down that particular road,” reaffirming the UK’s principle of “same risk, same regulatory approach.”
On top of that, the government is eyeing new frontiers in financial innovation. While a US-style crypto reserve is off the table, Reynolds has confirmed that the US and the UK will work together to adopt crypto as the UK continues to explore sovereign debt issuance via distributed ledger technologies (DLT). Procurement is already underway, with supplier appointments expected by late summer.
This latest stance follows Finance Minister Rachel Reeves’ announcement last week regarding compulsory regulation for crypto companies in Britain, aimed at “cracking down on bad actors while supporting legitimate innovation.” In that context, the UK’s regulatory alignment leans far closer to Washington than to Brussels.
Veteran market analyst Peter Brandt has issued a gloomy year-end forecast for XRP, suggesting the asset may struggle to maintain its momentum despite recent gains.
On April 18, Brandt shared his updated analysis on X (formerly Twitter), projecting two possible scenarios for XRP’s market capitalization by year’s end.
Cautionary Outlook for XRP Despite Recent Surge
The first scenario places XRP’s market cap around $116.67 billion, while the second offers a more bearish outlook of just above $60 billion.
Essentially, both figures imply a decline from XRP’s current valuation of roughly $2.09 per token at a market capitalization of $121 billion.
Brandt’s analysis is based on a technical pattern he previously identified on XRP’s price chart.
According to him, the formation resembles a classic head-and-shoulders setup—a pattern that often signals a trend reversal. If this plays out, XRP could fall as low as $1.07.
He added then that a move below $1.90 would confirm the pattern and likely trigger a steep correction of more than 50%. However, a break above $3 could invalidate the bearish outlook.
“XRP is forming a textbook H&S pattern. So, we are now range bound. Above 3.000 I would not want to be short. Below 1.9 I would not want to own it,” Brandt explained.
He emphasized that the company is not actively seeking external funding because it remains financially stable and is prioritizing product development and business expansion.
“Will we IPO in 2025? I think that’s a definitive no…We’ve said there’s no imminent plans to go public,” Garlinghouse stated.
While the company isn’t moving forward with an IPO this year, Garlinghouse didn’t completely close the door.
He noted that Ripple is evaluating whether going public would benefit the business in the long run. However, such a move isn’t a current priority.
“You have to ask yourself, okay, how does Ripple benefit from being a public company? And is it a high priority for us?” he said.
Moreover, Garlinghouse also hinted that the regulatory landscape—especially under new leadership at the SEC—could influence Ripple’s future decisions.
According to Johnny Garcia, Managing Director of Institutional Growth and Capital Markets at the VeChain Foundation, Texas will likely become the next state to establish a strategic Bitcoin reserve after New Hampshire.
In an exclusive interview with BeInCrypto, Garcia explained that states with pro-innovation leadership are more inclined to follow New Hampshire’s example. Meanwhile, others may adopt a more cautious, wait-and-see approach.
Why States Like Texas Are More Likely to Follow New Hampshire’s Bitcoin Reserve Lead
The VeChain executive described New Hampshire’s passage of House Bill 302 as a ‘landmark moment’ for digital assets. He stated that the development highlights Bitcoin’s growing recognition as a strategic financial instrument.
It also lays the groundwork to encourage wider blockchain adoption by normalizing digital assets in public portfolios.
“Momentum has been gathering at the State level since the presidential inauguration, and have commented before, there is a sea change taking place in the minds of State representatives across the general perception of Bitcoin [and other crypto assets] in the US,” Garcia told BeInCrypto.
Importantly, he believes the move could prompt the states already considering related legislation to accelerate their efforts so they don’t fall behind. The latest data from Bitcoin Laws shows that as of May 2025, 37 digital asset-related bills are active in 20 states.
Live Bitcoin Reserve Bills Across 20 States. Source: Bitcoin Laws
However, Garcia emphasized that the success of these bills depends on various factors. These include a state’s political climate, economic priorities, and risk tolerance.
“States with pro-innovation leadership, like Texas or Utah, are more likely to follow New Hampshire’s lead in short order, while others may wait to see how things play out for N.H,” he added.
With Texas now in the spotlight, there is strong optimism that similar legislation will be signed into law. Republican Governor Greg Abbott has expressed a favorable outlook toward the industry. The Texas Legislative session ends on June 2, so the decision could come any day now.
This trend highlights a clear difference of opinion between Democrats and Republicans regarding investments in digital asset reserves, a divide Garcia also acknowledges.
“These differences are nothing new, and I chalk them up to deeper-rooted perspectives, just like there are conservatives and liberals, or risk takers and those who like to play things safe. Some may try to tease out those groups and label people on one side as Democratic and the other as Republican, but I think that is too simplistic,” he said.
He acknowledged that bridging this gap poses a significant, but surmountable, challenge. The executive noted that increased cooperation can be fostered through education and a deeper understanding of the technology’s potential benefits and risks.
According to Garcia, the focus should be on identifying shared goals, such as leveraging blockchain to improve efficiency and transparency in government operations—an approach that could lay the groundwork for bipartisan collaboration.
“The ultimate goal would be to develop a thoughtful and balanced approach to digital assets that can benefit all Americans, regardless of political affiliation. This can be achieved by moving the conversation beyond partisan lines and focusing on the long-term economic and technological implications,” Garcia disclosed to BeInCrypto.
How Will State-Level Interest Impact Broader Crypto Adoption?
Whether Democrats and Republicans will ever fully agree on digital assets remains uncertain. Despite this, the introduction of bills and increased discussions at the state level signal growing interest and momentum.
Garcia said this shift marks a fundamental change in how public finance views blockchain assets, recognizing them as tools for innovation and resilience.
“It, combined with the strength of Bitcoin, has rekindled the discussion around ‘digital gold’ and could help reshape public finance by introducing decentralized, censorship-resistant assets into traditional portfolios,” he commented.
It normalizes digital assets as a strategic asset class, not just speculative. This encourages more institutional and enterprise participation.
This also pushes policymakers and the public to better understand digital assets’ risks and benefits, which can lead to clearer and better regulations.
It helps build infrastructure like regulated custody and on-chain auditability. This makes blockchain adoption easier for businesses.
He also said that while accessibility remains a challenge for mainstream adoption, state-backed initiatives could foster partnerships between the public and private sectors. This collaboration could lead to the development of user-friendly wallets, custody services, and decentralized finance platforms, expanding access for both retail and institutional users.
“This aligns with our focus at VeChain on scalable, enterprise-grade blockchain solutions, and we anticipate that state-level adoption will create a ripple effect, accelerating the integration of digital assets into both public and private sectors,” Garcia remarked.
The Balance Between Opportunity and Risk in State Crypto Holdings
While the benefits inspire optimism, the reserves carry several implications for a common taxpayer. Garcia explained that supporters believe state investments could boost long-term returns and diversify away from inflation-prone assets, potentially strengthening the state’s finances and benefiting taxpayers. Yet, he claimed,
“We have not yet reached the point where Bitcoin has achieved a greater level of stability, and if it sees a similar pullback compared to previous cycles, that would greatly diminish interest in setting up reserves and could cost taxpayers money.”
Garcia warned that significant price drops could lead to losses in the state’s reserves. Thus, if the allocation is too large or poorly managed, this could potentially threaten financial stability.
“This could, in theory, lead to pressure for tax policy changes to offset those losses, although this would depend heavily on the scale of the investment and the state’s overall financial health,” he mentioned to BeInCrypto.
Garcia advocated educating taxpayers about both the benefits and risks to maintain public trust. He emphasized that the long-term impact will depend on the responsible and strategic management of these reserves.
Beyond tax concerns, Garcia detailed several challenges states may face when implementing crypto reserves.
“The volatility of digital assets remains the biggest challenge facing states looking to implement reserves, as managing this volatility within a public treasury framework will require careful consideration and potentially sophisticated risk management strategies,” he commented.
Garcia also mentioned that educating lawmakers and the public is crucial for wider acceptance, as many state officials lack expertise in digital asset management and will need training or specialists. He underlined that federal regulatory uncertainty adds complexity. Therefore, clear rules on custody and reporting are necessary.
According to Garcia, transparency and strong cybersecurity measures are other key factors essential to ensuring the long-term success of these initiatives.
The Road to a National Strategic Bitcoin Reserve
Meanwhile, Garcia pointed out that concerns over taxes and market volatility are why President Trump’s Bitcoin reserve does not include provisions for investing the country’s funds. Instead, it focuses on using forfeited assets to build the stockpile.
The SBR would involve acquiring 1 million Bitcoins over five years and holding them for at least 20 years. Garcia declared that allowing direct Bitcoin investments would depend on shifting political and economic factors.
“Allowing for such purchases will require bipartisan support in both the House and the Senate, along with the President’s signature, but as the recent stall for the GENIUS Act shows, lawmakers are far from being on the same page,” the executive shared with BeInCrypto.
Garcia believes that a clear regulatory framework for crypto and a plan to incorporate Bitcoin into a strategic reserve will eventually be established by law. Nonetheless, the timeline and specific details of these bills remain ‘challenging to predict.’
Ripple has received full approval from the Dubai Financial Services Authority (DFSA)to offer regulated crypto payments in the Dubai International Financial Centre (DIFC).
It makes Ripple the first blockchain-enabled payments provider licensed by the DFSA, significantly expanding its operations in the Middle East.
Ripple Receives Full Approval from the DFSA
This development follows Ripple’s in-principle financial services approval from the DFSA in October. With its regional headquarters in Dubai since 2020, Ripple continues strengthening its presence in a region known for its regulatory clarity and fintech-friendly environment.
The DFSA license enables Ripple to offer its global payment solutions to businesses in the UAE. This would reinforce its role as a trusted partner for financial institutions looking to leverage blockchain technology for faster and more cost-effective transactions.
“We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption. Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit,” a press release shared with BeInCrypto read, citing Ripple CEO Brad Garlinghouse.
Indeed, Dubai has established itself as a global hub for blockchain and fintech innovation. It boasts a $400 billion international trade market. The UAE has seen growing demand from both crypto-native firms and traditional financial (TradFi) institutions looking for solutions to inefficiencies in cross-border payments. These include high fees, slow settlement times, and lack of transparency.
“Securing this DFSA license…will enable us to better serve the growing demand for faster, cheaper, and more transparent cross-border transactions in one of the world’s largest cross-border payments hubs,” Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, emphasized.
In the same tone, DIFC Authority CEO, His Excellency Arif Amiri, said this milestone presents Ripple with new growth opportunities across the region and beyond. Ripple’s regulatory approval in Dubai adds to its growing list of over 60 regulatory licenses worldwide.
Despite its success in Dubai, Ripple remains embroiled in a legal battle with the US SEC (Securities and Exchange Commission). However, recent reports indicate that the case may soon be resolved. Reportedly, Ripple’s legal team is negotiating more favorable terms regarding an August 2023 district court ruling.
The ruling imposed a $125 million fine and restricted Ripple from selling XRP to institutional investors. Ripple’s team argues that the firm should not be penalized for past regulatory uncertainty. This contention is based on theSEC’s reconsideration of its enforcement stance against other crypto firms.
“…Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing — but now the SEC itself is seemingly unsure whether any wrongdoing occurred. There’s no real playbook for this kind of thing, which could explain why this case is taking longer to resolve than the rest,” crypto journalist Eleanor Terret reported, citing two well-placed sources.
