Launched in 2018 by crypto firm Circle, USDC is now the second-biggest stablecoin globally, with more than $30 billion worth of tokens in circulation.
Nurphoto | Getty Images
LONDON — The U.K. is likely to see stablecoin laws introduced in a matter of “months, not years,” according to crypto firm Circle’s top policy executive.
Dante Disparte, Circle’s global head of policy, said that he sees the U.K. will soon bring in legislation for stablecoins, a type of cryptocurrency that aims to maintain a constant peg to government currencies such as the U.S. dollar or British pound
“I think we’re within months, not years” of formal laws for the stablecoin market being introduced, Disparte told CNBC in an interview last week during a visit to London.
The Treasury and the Bank of England were not immediately available for comment when contacted by CNBC.
Disparte suggested the U.K.’s lengthier approach to introducing laws targeted at crypto may have been a good thing given events that transpired in 2022, such as the collapse of FTX, a crypto exchange once worth worth $32 billion, as well as other industry crises.
“You could also look back, and I think many in the U.K. and in other countries would argue that they’re vindicated in not having jumped in too quickly and fully regulating and bringing the environment onshore because of all the issues we’ve seen in crypto over the last few years,” Disparte said.
However, he added that more recently, there’s been a sense of urgency to introduce formal regulations for stablecoins, as well as trading in digital assets and other crypto-related activities.
By not bringing forth stablecoin-specific rules, the U.K. would risk missing out on the benefits of the technology. He added that the U.K. has some catching up to do with the European Union, which has begun enforcing regulation of stablecoins under its MiCa, or Markets in Crypto Assets, regulation. Singapore has also agreed formal laws for the stablecoin industry.
“In the spirit of protecting the U.K. economy from excess risk and crypto, there’s also a point in time in which you end up protecting the economy from job creation and the industries of the future,” Disparte said. He stressed that “you can’t have the economy of the future unless you have the money of the future.”
Among the benefits cited by Disparte are innovation in the wholesale banking industry, real-time payments, and the digitization of the British pound.
Officials at the Bank of England are currently exploring whether or not to introduce a digital version of the pound, which has previously been dubbed “Britcoin” by the media.
Dante said he had met with officials from the Bank of England recently and was reassured by their approach to so-called central bank digital currencies, or CBDCs.
What has the UK done so far?
Prime Minister Keir Starmer’s predecessor, Rishi Sunak, had previously envisioned Britain becoming a global crypto hub.
When the Conservative Party was in power, U.K. government officials had signaled that new legislation for stablecoins as well as crypto-related services such as staking, exchange and custody would be in place as early as June or July.
In April, the former government announced plans to become a “world leader” in the crypto space, outlining plans to bring stablecoins into the regulatory fold and consult on a regime for regulating trading of cryptoassets, like bitcoin.
Last October, Sunak’s administration issued a response to a consultation on regulation of the crypto industry, saying it would aim to introduce “phase 2 secondary legislation” in 2024, subject to parliamentary approval.
The new Labour government hasn’t been as vocal as the Conservatives were on crypto regulation. In January, the party released a plan for financial services, which included a proposal to make the U.K. a securities tokenization hub.
Securities tokens are digital assets that represent ownership of a real-world financial asset, such as a share or bond.
Stablecoins are a multibillion industry, worth more than $170 billion, according to CoinGecko data. Tether’s USDT token is the largest stablecoin by value, with a market capitalization of over $120 billion. Circle’s USDC is the second-largest, with the combined value of coins in circulation worth over $34 billion.
However, the market has been shrouded in controversies in the past. In 2022, Tether’s USDT dropped from its $1 peg after a rival stablecoin, terraUSD, collapsed to zero. The events raised doubts over whether USDT was truly backed 1:1 by an equal amount of dollars and other assets in Tether’s reserves.
For its part, Tether says its coin is backed by dollars and dollar-equivalent assets, including government bonds, at all times.
Chinese smartphone company Honor on Wednesday revealed new AI features. Pictured here is CEO George Zhao speaking in Shanghai on June 26, 2024.
Nurphoto | Nurphoto | Getty Images
Honor, a spinoff from Huawei that focuses on higher-end devices, revealed Wednesday the latest version of its Android-based Magic operating system would focus on AI as an assistant.
A company demo showed how even with a vague voice command — such as “I’m tired, order something” — the phone was able to automatically order coffee without requiring the user to touch the device. It used AI to mimic actions on a touchscreen. Human intervention was only needed to complete the payment.
The AI assistant could also identify documents and send them to contacts, or make calls via social media app WeChat, all without requiring the user to touch the phone.
For devices in China, Honor works with Baidu and other Chinese companies for some AI functions, while developing others on its own. Honor works with Google for devices sold overseas.
The new AI features are slated for release on Honor’s forthcoming Magic 7 smartphone, due for launch on Oct. 30. Honor plans to roll out AI capabilities to all its devices by the first few months of next year.
The AI features have climbed to a new level, Toby Zhu, senior analyst, Canalys, said in a phone interview Wednesday after Honor’s event. He said the new features have greater potential to convince consumers to switch to another device.
“Apple faces challenges in China but from our data it won’t face a significant decline,” he said in Mandarin, translated by CNBC.
Apple’s falling China sales
Honor, Xiaomi and Huawei have all launched foldables, a category Apple has yet to enter.
About 17% of Apple’s revenue came from Greater China in the quarter ended June 29. That’s down from 19% in the year-ago period. Apple is scheduled to release quarterly results on Oct. 31 local time.
Apple CEO Tim Cook met with China’s Minister of Industry and Information Technology Jin Zhuanglong on Wednesday to discuss data security and cloud services, according to the ministry. Apple did not immediately respond to a CNBC request for comment.
Since launching on Sept. 20, Apple’s iPhone 16 Pro Max has dropped slightly in value on second-hand shopping platform Xianyu. The device was selling between 8,000 Chinese yuan ($1,122) and 10,000 yuan Wednesday, compared with 10,500 yuan to 16,300 yuan last month.
Huawei had launched its trifold Mate XT on the same day. As of Wednesday, second-hand prices for the device had dropped to the mid-20,000 yuan range, nearly half the price it was selling for on Sept. 20.
— CNBC’s Dylan Butts and Sonia Heng contributed to this report.
Check out the companies making headlines in extended trading: Texas Instruments — The semiconductor company added 2%. Third-quarter results topped analysts’ estimates, as Texas Instruments reported earnings of $1.47 per share on revenue of $4.15 billion. Analysts sought earnings of $1.38 per share and revenue of $4.12 billion, per LSEG. Seagate Technology — The data storage company slipped 3.6%. Seagate’s guidance for $2.3 billion in revenue for the fiscal second quarter was about in line with the Street’s estimate for $2.29 billion, per LSEG. The company topped analysts’ estimates on the top and bottom lines in the first quarter, however. Manhattan Associates — The supply chain software company declined nearly 7%. Manhattan Associates forecast full-year revenue in the range of $1.039 billion to $1.041 billion, while analysts polled by FactSet were expecting $1.04 billion. Enphase Energy — The solar energy tech company tumbled 9% after missing Wall Street’s estimates on the top and bottom lines in the third quarter and issuing a light fourth-quarter revenue outlook. Enphase expects revenue in the current quarter in a range between $360 million and $400 million, while analysts polled by LSEG forecast $435.8 million. Canadian National — Shares of the freight railway company added nearly 2%. Canadian National’s third-quarter adjusted earnings of $1.72 per share in Canadian dollars matched analysts’ estimates, while revenue of CA$4.11 billion was below the CA$4.12 billion anticipated by analysts polled by LSEG. Starbucks — Shares of the coffee chain pulled back more than 3%. Preliminary quarterly results showed a decline in sales. Starbucks said it is also suspending its 2025 forecast. McDonald’s — The fast-food stock was 9% lower after the U.S. Centers for Disease Control and Prevention said an E. coli outbreak tied to the company’s Quarter Pounder burgers has resulted in the hospitalization of 10 people and one death. CoStar Group — Shares were off 5%. The real estate analytics company’s fourth-quarter outlook missed analysts’ estimates. CoStar forecasts earnings in the range of 21 cents to 23 cents per share, while analysts polled by LSEG were looking for 24 cents.
Check out the companies making headlines in midday trading: Genuine Parts — Shares fell about 20% on the back of the company’s weaker-than-expected earnings for the third quarter. During the period, Genuine Parts earned $1.88 per share, excluding items, below the $2.42 per share that analysts polled by FactSet were expecting. It also slashed its full-year forecast. The stock was headed for its worst day on record. General Motors — The stock jumped more than 9% after the automaker posted better-than-expected third-quarter results and raised its full-year forecast. For the period, GM earned an adjusted $2.96 per share on $48.76 billion in revenue. Analysts had expected $2.43 in earnings per share on $44.59 billion in revenue, per LSEG. Shares were headed for their biggest one-day gain in nearly a year. Verizon Communications — The telecommunications giant dipped 4% after posting third-quarter revenue of $33.33 billion, which came in below the $33.43 billion analysts polled by LSEG had expected. However, Verizon’s earnings per share of $1.19 came in 1 cent above estimates of $1.18. The company also reaffirmed its full-year outlook. GE Aerospace — The defense company tumbled more than 9% after posting mixed third-quarter results. GE Aerospace reported adjusted revenue of $8.94 billion, while analysts polled by LSEG estimated $9.02 billion. Meanwhile, adjusted earnings per share of $1.15 beat consensus forecasts by just 1 cent. Philip Morris International — The tobacco company popped nearly 9% after reporting third-quarter results that beat expectations. Philip Morris also lifted its 2024 guidance and showed strength in its smoke-free business. Lockheed Martin — Shares slid more than 5% after the company’s third-quarter revenue missed expectations. Lockheed Martin posted $17.1 billion for the quarter, below the $17.35 billion that analysts surveyed by LSEG were expecting. However, earnings came in above expectations in the period, and the company also lifted its outlook for the full year. Deckers Outdoor — Shares fell nearly 3% following BTIG’s downgrade of the footwear and apparel maker to neutral from buy. The firm believes signs of moderating growth are putting shares “at risk.” First Solar — Shares popped 3.4% on the heels of Citi’s upgrade to buy from neutral. Citi said First Solar should be able to benefit regardless of who wins the U.S. presidential election in November. Zions Bancorporation — Shares rose more than 7% after the regional bank posted better-than-expected quarterly results. Zions earned $1.37 per share on revenue of $792 million, while analysts had expected $1.17 in earnings per share on revenue of $779 million, according to LSEG. The bank’s net interest margin also saw a year-over-year increase. Nucor — The stock plunged about 8% after the steel producer said it sees GAAP earnings per share for the current period declining compared to the prior quarter. That said, the company reported an adjusted earnings and revenue beat for the third quarter. Sherwin-Williams — Shares dropped nearly 4% after the paint manufacturer’s third-quarter results missed estimates. Sherwin-Williams posted adjusted earnings of $3.37 per share, excluding items, on revenue of $6.16 billion. That is lower than the $3.55 in earnings per share on revenue of $6.20 billion that analysts were looking for, per FactSet. Paccar — Shares lost more than 5% after the company reported a drop in deliveries. Global new truck deliveries in the third quarter came in at 44,900 units , below the 50,100 units the company saw in the year-ago period. Quest Diagnostics — The stock rallied nearly 7% on the back of third-quarter results that beat analysts’ expectations. Quest earned an adjusted $2.30 per share on revenue of $2.49 billion. Analysts polled by FactSet anticipated a profit of $2.26 per share on revenue of $2.43 billion. Norfolk Southern — Shares popped 4% after the freight train operator reported earnings and revenue that beat analysts’ expectations. The move put Norfolk Southern on pace for its best day since July 26, when it jumped 10.9%. — CNBC’s Alex Harring, Samantha Subin, Lisa Kailai Han and Hakyung Kim contributed reporting.