Crypto-focused division a16z of VC giant Andreessen Horowitz has urged the UK Treasury to take a more "nuanced" approach to regulating the crypto space, praising the country's "proportionate and focused, agile and flexible" regime. In contrast, a16z warned last month that the US was losing its edge in the digital asset space due to its heavy-handed approach to regulation.

Polygon Labs also voiced support for the UK's steps to regulate the industry, suggesting that "unbacked cryptoassets" should be treated differently from coins and tokens. In contrast, the SEC has aggressively gone after major crypto brands in the US, leading some to believe that regulators are forcing tech offshore.