Nearly a dozen industry bodies have warned the Chancellor not to delay plans to develop a central strategy on the regulation and adoption of cryptocurrencies and digital assets ahead of a pivotal vote in parliament.

Bosses from the likes of Innovate Finance, The City UK and Tech UK urged John Healey to recommit to publishing the government-led digital finance blueprint in 12 months, warning Britain could squander its natural head-start in the space should it fail to wave the plans through next week.

“A strategy would provide the necessary ‘north star’, giving businesses and investors greater confidence and signalling in the UK’s long-term direction,” the industry chiefs wrote in a letter seen by , adding: “Other jurisdictions are moving rapidly to attract digital-asset businesses, investment and talent. The UK should not assume that its existing strengths will automatically translate into long-term leadership.”

As part of its flagship Financial Services and Markets Bill, the government must prepare, publish and consult on a fresh strategy for the regulation of digital assets. The strategy, which was the result of a Conservative party amendment after initial government resistance, was seen as a major fillip for the crypto and stablecoin industry after a protracted lobbying effort.

Under terms agreed to by the Rachel Reeves’ Treasury, ministers confirmed the blueprint would explore areas like the government’s “approach to the regulation of digital assets”, the regimes in place among international counterparts and the balance between safeguards and growth. Results from the strategy should be published and consulted on within a year, the bill stipulated.

But there is growing disquiet in the stablecoin and crypto sector that the Treasury may look to use its large Commons majority water down or delay the plans at a crunch Commons vote next week. Specifically, the industry bodies urged the government not to drop ‘Clause 50’ from the bill, which forced the ministers to complete the blueprint in a year.

Dropping crypto blueprint deadline would be ‘profound mistake’

At a Lords debate in September, investment minister Lord Pitt-Watson argued the 12-month deadline was redundant and satisfying it risked “cutting across work currently under way” at regulators and government departments.

Katie Harries, director of policy at Coinbase, urged the government to retain the clause and “deliver the strategy the sector has been calling for”.

“A ‘north star’ to provide certainty, direction and a shared ambition for the UK’s digital asset sector. Regulation is one important piece of the puzzle,” she said.

Shadow City minister Mark Garnier said: “The government must get behind this successful amendment to publish a digital assets strategy, and demonstrate the UK’s commitment to the next generation of financial instruments. To do otherwise would be a profound mistake.”

Financial watchdogs are already grappling with how best to oversee the fledgling crypto and stablecoin sectors, which have grown rapidly to become a core plank of investor portfolios and payments systems. Its cheerleaders argue that excessive regulation could jeopardise the industry’s growth potential, though critics warn too little oversight could leave investors and the finance system vulnerable to a speculation-led crash.

The Bank of England is due to finalise its stablecoin regime – which regulates the growing number of blockchain-based currencies pegged to a standard currency – later this year.

The government was approached for comment.