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    Stocks making the biggest moves premarket: Johnson & Johnson, Goldman Sachs, Sunrun and more

    In this photo illustration, a container of Johnson and Johnson baby powder is displayed on April 05, 2023 in San Anselmo, California. 
    Justin Sullivan | Getty Images

    Check out the companies making headlines before the bell on Tuesday.
    Goldman Sachs — The investment bank said first quarter revenue totaled $12.22 billion, below the $12.79 billion consensus estimate of analysts polled by Refinitiv. Fixed income, currencies and commodity trading was $3.93 billion in the first quarter, well below the $4.16 billion Wall Street estimate, according to FactSet. Goldman shares declined by nearly 4%. Goldman also said it took a $470 million hit tied to the sale of consumer loans in its Marcus unit.

    Johnson & Johnson — The drug and consumer products maker said first quarter sales rose 5.6% to $24.75 billion, above the $23.67 billion consensus estimate of analysts polled by Refinitiv. Adjusted earnings came in at $2.68 per share ex-items, above the consensus estimate of $2.50. The CEO noted “strong performance” across all three business segments with the company raising 2023 guidance midpoints. Shares of the Dow Industrials constituent gained more than 1% premarket.
    Bank of America — The Charlotte-based bank gained about 1.8% after topping first-quarter expectations on the top and bottom lines as interest rates rose. Higher rates helped boost BofA’s net interest income by 25% to $14.4 billion in the period.
    Sunrun — The residential solar energy company’s shares rose 4.2% after KeyBanc upgraded the stock to overweight from sector weight. The bank said Sunrun could rally more than 31% from Monday’s close as it gains market share in California. Shares are down 14.4% year to date.
    Nvidia — Shares of the chipmaker rose 2.4% Tuesday after HSBC upgraded the stock two levels, to buy from reduce. The firm said Nvidia is showing it has more power in pricing artificial intelligence chips than previously thought. Shares of Nvidia have already soared about 85% since the start of the year, and HSBC thinks there’s room for even more appreciation. 
    Lockheed Martin — Shares rose nearly 1% premarket after the aerospace and defense contractor beat Wall Street’s expectations in the first quarter and reaffirmed its full-year guidance.

    Chubb — The insurer added 1.7% on the back of an upgrade from Bank of America to buy from neutral. The firm said Chubb has multiple paths for growth and is skewed to high-net-worth customers who can help mitigate the negative impacts of inflation on the top line.
    Bank of New York Mellon — The custody bank’s shares were up 0.8% Tuesday morning despite first quarter revenue missing estimates. Bank of New York Mellon reported $4.36 billion in revenue, while Wall Street had anticipated $4.4 billion, according to consensus estimates from Refinitiv.
    PowerSchool Holdings — Shares added more than 3% in early trading after Goldman Sachs upgraded the education technology to buy from neutral. The bank assigned a $24 price target on the company, which suggests the stock could gain as much as 22% from Monday’s close.
    — CNBC’s John Melloy, Samantha Subin, Hakyung Kim, Alex Harring and Brian Evans contributed reporting. More

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    Britain could see crypto-specific regulation in the next 12 months, top lawmaker says

    Britain could introduce specific laws aimed at regulating the cryptocurrency industry in the next 12 months, Andrew Griffith, economic secretary to the U.K. Treasury, told CNBC.
    The U.K. wants to position itself as a “global hub for cryptoasset technology.”
    The British government laid out plans in February to regulate cryptoassets and opened its suggestions up for consultation. The consultation period ends Apr. 30.

    Britain could introduce specific laws aimed at regulating the cryptocurrency industry in the next 12 months, a top lawmaker told CNBC.
    The U.K. government laid out plans in February to regulate crypto assets and opened its suggestions up for consultation. The consultation period ends Apr. 30.

    Andrew Griffith, economic secretary to the U.K. Treasury, said in an interview on Monday that specific crypto regulation could come into force within a year or so.
    “We’ve got control back of our rulebook, not something the U.K. has had for decades,” Griffith told CNBC, referring to Britain’s exit from the European Union.
    “So we’ve got the ability to move in an agile and proportionate way. And I’m definitely keen we make the most of that opportunity.”
    Jurisdictions around the world from Dubai to Singapore have been trying to position themselves as crypto-friendly places to encourage firms to set up shop there.
    The U.S., meanwhile, has taken a hard line on cryptocurrency firms with its regulators stepping up enforcement action against companies.

    Britain, however, wants to position itself as a place for crypto firms to come. Last year, Rishi Sunak, then U.K. finance minister and now the prime minister, said his ambition was to make Britain a “global hub for cryptoasset technology.”

    The U.K. is looking to introduce legislation to regulate the cryptocurrency industry as it looks to become a “global hub” for cryptoassets.
    Wael Alreweie | Istock | Getty Images

    Crypto companies told CNBC they want clarity around rules and are pushing governments to come up with frameworks for them to operate. In the U.S., the Securities and Exchange Commission has used existing securities rules to target cryptocurrency firms.
    Griffith said that the U.K.’s regulatory approach would mix both existing regulations and new ones.
    “Wherever possible, we want to see the same asset, the same transaction regulated in the same way. But there are some additional opportunities in the crypto asset or distributed ledger space and we want to take advantage of that,” Griffith told CNBC.
    The lawmaker pointed to the Financial Services and Markets Bill, which is currently working its way through Parliament, as an example of where upcoming legislation already includes some provisions on cryptocurrency. That specific law, which is not yet in force, aims to bring asset-backed stablecoins into the regulatory fold.
    Stablecoins are a type of cryptocurrency designed to mirror real-world assets such as the U.S. dollar. They are often backed by real assets such as bonds or fiat currencies.
    Distributed ledger technology, sometimes called blockchain, refers to multiple records of transactions that are not owned by a single entity. They may be shared and updated at the same time to ensure accuracy for all the parties involved in a transaction. More

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    Nio says it won’t join the ‘price war’ and slash prices like Tesla

    Chinese electric car company Nio will keep its prices high rather than cutting them, CEO William Li told CNBC in an interview.
    Elon Musk’s car company has this year slashed prices in the U.S. and China.

    New-energy electric vehicles are seen at a Nio store in Shanghai, China, March 19, 2023.
    Future Publishing | Future Publishing | Getty Images

    SHANGHAI — Chinese electric car company Nio will keep its prices high rather than cut them, CEO William Li told CNBC in an interview.
    “For us, we will certainly not join the price war,” Li said, claiming Nio’s products and services are worth the price. That’s according to a CNBC translation of his Mandarin-language remarks.

    Tesla, Elon Musk’s car company, this year slashed prices in the U.S. and China. Nio also sells cars in the premium segment of the market, but its SUVs and sedans can be far more expensive than Tesla’s models.
    Li said his company will focus on improving its customer services — such as adding battery swapping and charging stations. The swapping technology claims to change out batteries in minutes so that drivers don’t have to wait for charging.

    There are many new products coming to market, which of course means fiercer competition for us. But for users, they have a more abundant selection.

    William Li

    Nio announced last week that starting June 1, people who put down deposits for some of its car models will only get to use the company’s battery swapping service for free four times a month. That’s down from as many as six free swaps a month previously.
    The company also said last week it would start charging drivers 380 yuan ($56) a month to use its assisted driving system, called Navigate on Pilot (NOP) plus. The software has been free to test.
    Offering technology to assist drivers with parking, highway lane changes and other tasks has increasingly become a selling point for electric car companies in China.

    Such assisted driving technology right now may only rank 9th or 10th among users’ needs, according to Li, who is also Nio’s founder and chairman. He said people’s assessment of the tech will change once they try it, and that he expects assisted driving to become a standard car feature.
    Nio’s vehicle sales grew by 37% last year to 45.51 billion yuan ($6.61 billion), with the company overall still operating at a loss.
    Its revenue comes primarily from China, where government policies have helped accelerate growth in electric car sales. New energy vehicles — which includes hybrid and pure electric — saw penetration of passenger car sales reach 34% in March, according to the China Passenger Car Association.
    That’s faster than Nio anticipated, Li said.
    “There are many new products coming to market, which of course means fiercer competition for us,” he said. “But for users, they have a more abundant selection.”

    Competitive landscape

    In the first quarter, 1.3 million new energy passenger cars were sold in China, up 22% from a year ago.
    Within that market, Nio said it delivered 31,041 vehicles in the first quarter, up by 20.5% year-on-year. Another U.S.-listed Chinese electric car brand, Li Auto, saw first quarter deliveries jump by more than 60% to more than 52,000 vehicles.

    BYD remains by far the dominant market player in China. It sold 264,647 purely battery-powered passenger cars in the first three months of the year, up more than 80% from a year ago. Hybrid passenger vehicle sales doubled from a year ago to 283,270 in the first quarter.
    Tesla delivered more than 422,000 cars worldwide in the first quarter, up 36% from a year ago. The company did not break out figures for China, which typically accounts for well over 20% of Tesla’s revenue.

    Geopolitics and global expansion

    In the last two years, Nio began deliveries to European countries such as Norway and Germany. Tensions between China and the U.S. have escalated, while relations between Europe and Beijing have not been smooth either.
    Sustainable global development requires good products for users around the world, something that cannot be done by relying on a single country, Li said.

    Read more about electric vehicles from CNBC Pro

    “Despite the big challenges we face from geopolitics, we still want to stick to serving our customers, pay attention to the pace of investment and manage operational risks well,” he said.
    When asked about U.S. market, Li said the company was proceeding with its plans. “But we know challenges will certainly be greater and greater,” he said, without elaborating. More

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    Ford unveils new Lincoln Nautilus to be imported from China

    Ford Motor will import its next-generation Lincoln Nautilus from China to the U.S., the company said Monday night.
    The vehicle is currently produced for the U.S. at a Canadian plant, where the automaker recently announced it would be investing about $1.3 billion to transition the facility for EVs.
    Importing a vehicle from China to the U.S. is not unprecedented but can draw public and political criticism.

    2024 Lincoln Nautilus

    Ford Motor will import its next-generation Lincoln Nautilus from China to the U.S., the company said Monday night.
    The midsize crossover is currently produced for the U.S. at Ford’s Oakville Assembly Plant in Ontario, Canada. The automaker recently announced it would be investing 1.8 billion Canadian dollars (about $1.3 billion) to transition the facility into a new electric vehicle hub.

    This marks the first time Lincoln will import a vehicle to the U.S. from China.
    Importing a vehicle from China to the U.S. is not unprecedented but can draw public and political criticism or backlash, especially when tensions between the two countries are high.
    Most notably, General Motors has been criticized for importing its Buick Envision crossover from China to the U.S. since 2016. The Detroit automaker has sold more than 200,000 of the China-made vehicles, which American union officials have called the “Invasion” and “a slap in the face.”
    Importing a vehicle from overseas to the U.S. can make good business sense, however, for a company such as Ford.

    2024 Lincoln Nautilus 

    “In this case, it’s a good use of resources,” said Stephanie Brinley, associate director of research at S&P Global Mobility. “Without importing, Lincoln does not get the product, and the brand needs products between now and when its EVs arrive.”

    Brinley said the decision to import the Nautilus does not suggest a fundamental shift for future Lincolns for the U.S. market, noting the company continues to produce most of its vehicles for the U.S. market in North America.
    “Lincoln is a global brand that is growing,” a Lincoln spokeswoman said in an email. “As we execute our U.S. manufacturing growth plans, we think it makes sense to centralize Nautilus production in China for both markets (since we already produce Nautilus in China for the local market) which allows us to gain manufacturing efficiencies and retool our Oakville facility to get ready to build our next generation EVs.”

    2024 Lincoln Nautilus 

    The news comes a week after Ford released a report that said it was the top automaker in terms of vehicles assembled and hourly autoworkers employed in America as well as vehicles exported from America to other countries.
    The new Nautilus will feature a redesigned exterior and new interior that includes nearly door-to-door screens for occupants in the front seats. It also offers a new feature called “Lincoln Rejuvenate.”
    Ford describes Lincoln Rejuvenate as a “multisensory, in-cabin experience including lighting and digital scenting.” Lincoln revealed a concept vehicle called the Star last year that included such features, but the Nautilus is the first production car for the U.S. to be built with the unique characteristics. The automaker has offered vehicles with the feature in China.

    Read more about electric vehicles from CNBC Pro

    “Lincoln Rejuvenate, a stationary experience, orchestrates specially curated sensory experiences tied to lighting, screen visuals, personal preferences such as seating position and massage options — allowing clients to recharge,” the company said in a release for the vehicle’s reveal Monday night.
    Scent cartridges to fill the vehicle’s cabin are housed in the center armrest. The company said scents that come with the package include:

    “Mystic Forest, an earthy blend with woody, rich notes of patchouli.”
    “Ozonic Azure, a crisp blend of aromatic patchouli and traces of bright violet.”
    “Violet Cashmere, exotic white florals and trusted violet that are crisp and refined as fresh linen.”

    The vehicle will be powered by a 2.0-liter turbocharged engine as well as a hybrid powertrain. The car is expected to go on sale in early 2024, with starting prices between $51,810 and $75,860.

    Lincoln Star concept electric vehicle

    The redesigned Nautilus and “Lincoln Rejuvenate” come as the once-prominent American luxury brand attempts to rejuvenate itself.
    Sales of Lincoln vehicles were down by 4% last year in the U.S. to fewer than 83,500 vehicles. That’s down from a recent peak of more than 112,200 in 2019. More

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    Market may ignore recession for first time since 1945, RBC’s top strategist Lori Calvasina finds

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    Wall Street may be ripping a page out of the post-WWII era.
    According to RBC Capital Markets’ Lori Calvasina, stocks may be ignoring all signs of a recession. 

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    “If you go all the way back to 1945, that was the recession coming out of World War II, the stock market just marched through it,” the firm’s head of U.S. equity strategy told CNBC’s “Fast Money” on Monday. “It is the only recession where it’s essentially been ignored.”
    In a research note out this week, Calvasina tackled the S&P 500’s performance during recessions going back to 1937. She found the 1945 recession was the only one with no market pullback.

    RBC U.S. Equity Strategy, Haver

    She listed the resemblance between the government war funding in 1945 to 2020’s massive Covid relief and the Fed’s rate hikes as a few examples.
    “I actually found some interesting terms that were similar. It was described as a technical recession, just being driven by the fact that the wartime economy was shutting down, and we were pivoting to a peacetime economy,” said Calvasina. “[This] idea of a manufactured recession that we were all talking about last year, you actually had it back then.”
    However, she also acknowledged that there are differences between the two time periods and noted that she isn’t a believer of the bull case.

    “I actually think that we priced in a recession back at the October lows, but I think people are tired of hearing that,” noted Calvasina.
    Her S&P 500 year-end price target is 4,100. She adjusted her S&P EPS forecast last week to $200 from $199. The S&P closed at 4,135.32 today and is up more than eight percent year-to-date.

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    Nordstrom adds former Nike executive to board as activist battle continues

    Nordstrom appointed former Nike executive Eric Sprunk to its board.
    The move comes as Nordstrom faces sharp scrutiny by investors, including activist Ryan Cohen.
    The retailer has reported slowing sales and declining profits.

    Shoppers walk into a Nordstrom department store on March 03, 2023 in Austin, Texas. 
    Brandon Bell | Getty Images

    Nordstrom on Monday said it has tapped former Nike operating chief Eric Sprunk to join its board, as the company faces pressure from an activist investor.
    Nordstrom shares rose about 4% on Monday to close at $17.00.

    Sprunk, who was Nike’s COO from 2013 to 2020, will join the board immediately, the company said. With the appointment, Nordstrom said its board will grow to 11 directors.
    In a news release, Nordstrom board member Brad Tilden highlighted Sprunk’s “track record of driving e-commerce growth and large-scale transformations within a complex global business.”
    The move comes as the retailer’s performance gets scrutinized by some investors, including Ryan Cohen, an activist investor. Cohen, founder of Chewy and chairman of GameStop, bought a major stake in Nordstrom in February with plans to shake up the retailer’s board, according to people familiar with the matter, who wished to remain anonymous due to the private nature of the discussions.
    One of those requested changes was removing Mark Tritton, former Bed Bath & Beyond CEO, from the board, those people said. Cohen previously bought and then sold a major stake in the home goods retailer, which is now on the verge of bankruptcy.
    In a proxy filing Monday, the company said it “received notice from a shareholder stating its intention to nominate two candidates for election to the Board at the Annual Meeting, which notice was later withdrawn.”

    Nordstrom declined to say whether Cohen is that shareholder and if he influenced Sprunk’s appointment. Cohen’s firm, RC Ventures, did not respond to a request for comment.
    Yet the proxy also hints at a potential ongoing dispute with Cohen. According to the proxy, Cohen has made moves to seek a larger stake in the company. In early March, his firm formally requested a waiver of a board provision so he could acquire up to 19.9% of Nordstrom’s common stock. His firm owned 4.2% of the company’s common stock as of early March.
    Nordstrom’s board provision, called a Rights Plan, was adopted last September. It is intended to protect the company and shareholders from a takeover, such as a entity, person or group gaining control of the company by surreptitiously amassing a large stake.
    In the proxy, the board recommends that shareholders vote to extend that provision until Sept. 19, 2025. Shareholders will vote at the company’s annual meeting, which will be in the coming months.
    As the retail backdrop gets tougher, Nordstrom has reported slowing sales and falling profits. The high-end department store’s net income fell to $119 million, or 74 cents per share, from $200 million, or $1.23 per share, in the holiday quarter compared with the year-ago period. Net sales for the company’s namesake banner decreased 2.4%, and net sales for its off-price banner, Nordstrom Rack, dropped 8.1% in the quarter versus the year-ago period.
    This fiscal year, the company said it expects revenue to drop by between 4% and 6%.
    – CNBC’s Gabrielle Fonrouge contributed to this report. More

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    NJ deli stock fraud defendant denied bail as judge calls him a serious flight risk

    Peter Coker Jr., one of the suspects indicted in a securities fraud case involving a $100 million New Jersey deli, was ordered held without bail.
    Federal judge Christine O’Hearn ruled Coker Jr. is a serious flight risk because he didn’t attempt to turn himself in after learning he was indicted in September.
    Coker Jr.’s attorney argued his client didn’t surrender because he was sick and concerned about traveling.

    Peter Coker Jr., left, is issued search warrants from police at his villa on the southern resort island of Phuket, Thailand, Jan. 11, 2023.
    Crime Suppression Division, Royal Thai Police | AP

    CAMDEN, N.J. — The former fugitive at the center of a securities fraud case involving a $100 million New Jersey deli was ordered held without bail Monday as a federal judge ruled he is a serious flight risk.
    A magistrate judge had approved Peter Coker Jr.’s release on a $1.5 million bond in late March, but he remained in an Essex County jail as prosecutors appealed the ruling. 

    During a hearing Monday in federal court in Camden, New Jersey, and in motions filed before the court, prosecutors argued Coker Jr. should be held pending trial because he had renounced his U.S. citizenship, had “extensive” links to foreign countries and owned more than $3 million in assets. 
    Judge Christine O’Hearn sided with the government. She repeatedly noted that Coker Jr., who had been living in Phuket, Thailand, for the past year and a half, had made no effort to contact the authorities to turn himself in after he learned he’d been indicted in September. 
    She said Coker Jr. was only in the U.S. to answer the charges against him because federal authorities eventually tracked him down to Phuket and extradited him to the U.S.
    Coker Jr., who was smiling as he was led into court clad in a yellow jail jumpsuit, didn’t make formal comments to the judge.
    The 53-year-old Coker Jr., his father, Peter Coker Sr., and a third man, James Patten, were charged in a 12-count indictment for securities fraud and conspiracy for allegedly concocting a scheme to inflate the stock prices of two companies, Hometown International and E-Waste.

    At the time of the alleged actions, the firms’ market capitalizations exceeded $100 million each even though Hometown’s only asset was a small deli in Paulsboro, New Jersey, that made no money and E-Waste was a shell company, according to prosecutors. 
    Coker Jr.’s defense attorney, John Azzarello, argued his client had made no efforts to hide while in Phuket. He also said Coker Jr. had not changed his name or made other attempts to evade capture from authorities after learning about the charges against him. 
    When O’Hearn questioned why Coker Jr. didn’t try to contact the government or turn himself in after he learned he had been indicted, Azzarello explained that his client had been hospitalized with cirrhosis and hepatitis. 
    There was “fear and concern” that if Coker Jr. turned himself in to Thai authorities, he would be forced to get on a more than 25-hour plane ride to the U.S., Azzarello said. He added that Coker Jr.’s local doctors had advised him not to travel because of his health issues.
    Assistant U.S. Attorney Shawn Barnes acknowledged that Coker Jr. had health concerns, but said officials could have made arrangements to ensure his safety while traveling. 
    O’Hearn decided Monday there were no conditions that could reasonably assure Coker Jr.’s return to court. She agreed that he was a flight risk because he is not a U.S. citizen, does not have significant ties to the U.S. and is not currently employed, among other reasons. 
    Calling Coker Jr. a “sophisticated defendant” who is “very familiar with international travel,” O’Hearn said her “main concern” was that he didn’t attempt to surrender after he learned he was indicted. She also cited his assets and “little if any” family ties. 
    “I am surprised,” Azzarello told CNBC of O’Hearn’s decision after the hearing. 
    He said he wasn’t yet sure about his next move and whether he would propose a different bail package or attempt to appeal the judge’s ruling. 
    After the judge delivered her ruling, Coker Jr.’s mother cried in the gallery and outside of the courtroom. She and her husband, the elder Coker, declined to comment to CNBC. More

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    Crypto stablecoins might need limits to avoid disruptions to financial stability, warns Bank of England

    Jon Cunliffe, deputy governor of the Bank of England, said stablecoins may need limits to “avoid disruptive change that could threaten financial stability.”
    The cryptocurrency tokens that aim to mirror the value of traditional assets such as fiat currencies are attracting greater scrutiny from regulators.
    The collapse of TerraUSD, a so-called algorithmic stablecoin, led to concerns over the lack of protection for consumers in the event of industry failures.

    The entire stablecoin market is now worth more than $100 billion.
    Justin Tallis | AFP via Getty Images

    Regulators may need to introduce limits on the use of stablecoins in payments to prevent potential threats to financial stability, an official at the Bank of England warned Monday.
    “The Bank of England’s assessment is that over time, the financial stability risks should be manageable including risks from the impact on the banking system,” Jon Cunliffe, deputy governor of the Bank of England, said in a speech at the Innovate Finance Global Summit in London.

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    “But we cannot know for certain the extent and the speed at which payment stablecoins might be adopted and we may well need limits, at least initially, to ensure we avoid disruptive change that could threaten financial stability.”
    That would mean significant implications for stablecoins such as Tether’s USDT, Circle’s USDC and Binance’s BUSD.
    Stablecoins are cryptocurrency tokens that aim to mirror the value of traditional assets such as fiat currencies. Regulators are concerned about the assets that underpin their value, and the potential risks they may pose to the financial system if they become greater competitors to fiat money.
    Volatility in the crypto markets raised questions about just how stable such tokens truly are after TerraUSD, a so-called algorithmic stablecoin, saw its value plummet to nearly zero cents when investors yanked out their funds due to fears over the technical model underpinning the token.
    There is currently no framework for consumers to be reimbursed in the event of a stablecoin failure, unlike commercial bank money which is protected by deposit insurance up to £85,000 ($105,100). Cunliffe said this reinforced the need to ensure the assets behind a stablecoin are “at all times of sufficient value to meet redemption requests.”

    Cunliffe said that “systemic stablecoins,” or tokens which pose risks to the financial system, would need to be backed with highly liquid assets to ensure holders can easily withdraw their funds.
    Such assets could include deposits at the Bank of England “or very highly liquid securities,” he added.
    The British government is consulting on new regulation to address the risks posed by digital currencies to consumers, while also seeking to ensure the country is seen as a place for crypto firms to do business.
    The Financial Services and Markets Bill, which is currently working its way through the U.K. parliament, already includes some provisions on cryptocurrency. That specific law, which is not yet in force, aims to bring asset-backed stablecoins into the regulatory fold.
    Prime Minister Rishi Sunak is a noted backer of crypto, having set out early last year to make Britain a “crypto hub” in his capacity as finance minister under Boris Johnson.
    The U.K. is also exploring the possible issuance of examining a digital version of the British pound. The Bank of England said in February that it was “likely” Britain would need a central bank digital currency if current trends around the decline in cash use continue.
    Cunliffe reiterated that aim Monday, saying a CBDC was “likely to be needed if current trends in payments and money … continue.” He cited the risk of cash use declining further and more non-bank players issuing their own digital coins.
    The Bank of England, the U.K. Treasury and industry are debating concerns over how such currencies would be implemented, such as the privacy of people transacting with them and implications for financial stability.
    WATCH: How stablecoins became the backbone of crypto More