UK Lifts Retail Ban on Crypto ETNs and Introduces Tax Benefits; US CLARITY Act Stalled by Government Shutdown

The United Kingdom has officially reversed its 2021 ban on retail access to crypto Exchange-Traded Notes (ETNs), signaling a major step toward integrating digital assets into the mainstream financial system.

UK Regulatory Shift and Market Growth:

• FCA Reversal: The Financial Conduct Authority (FCA) announced on Wednesday that retail investors can now access crypto ETNs via FCA-approved exchanges. The regulator cited the market’s growing maturity and a better understanding of digital asset products as the reasons for the change.
• Tax Advantages: Starting immediately (Oct. 8), crypto ETNs can be included in registered pension schemes. Furthermore, from April 2026, they will be eligible for Stocks & Shares Individual Savings Accounts (ISAs), offering UK citizens tax-efficient investment options.
• Market Impact: This shift is forecast by IG Group to expand the UK crypto market by up to 20%, as research indicates 30% of UK adults would consider investing in crypto via these regulated products.
• Remaining Restriction: The FCA’s separate ban on crypto derivatives remains in force, as they are still deemed too risky for the general public.

US Legislative Update:

In contrast, the US digital asset agenda is stalled by the ongoing government shutdown.

• CLARITY Act Status: Representative Bryan Steil (R-WI) confirmed that the CLARITY Act—a comprehensive crypto market structure bill passed by the House—is still on track for passage before 2026. Steil remains optimistic that the bill can be moved forward quickly once the shutdown ends.
• Impact of Shutdown: The lapse in government funding has significantly limited legislative activity and forced the SEC to operate with minimal staff, likely pausing reviews of pending crypto-related decisions, including ETF applications.

While the UK accelerates integration, the US faces delays due to political gridlock.

October 2025, Cryptoniteuae