13/08/2025
The Rt Hon. [Laura Trott MP
House of Commons
London
SW1A 0AA
Subject: Urgent Need for Modernization of UK Pension Investment Rules to Include Digital Assets
Dear Rt Hon. [MP's Name],
I am writing to you today as a concerned constituent and an active participant in the digital asset economy, to highlight a critical disparity in our pension investment landscape that I believe is hindering UK citizens and undermining the Government's ambitious vision for the UK.
In April 2022, the UK Government set out its landmark vision to make the UK the global hub for cryptocurrency investment, committing to create the right conditions for digital asset businesses to set up and scale up in the UK.[1, 2] This ambition is commendable and recognizes the immense potential for economic growth, innovation in financial services, and job creation that this sector offers.[1]
However, despite this forward-looking vision, UK Self-Invested Personal Pensions (SIPPs) remain significantly restricted when it comes to investing in digital assets. Current Financial Conduct Authority (FCA) regulations in the UK explicitly state that direct investment in cryptocurrencies or derivatives within a SIPP is not permitted.[3, 4, 5] While indirect exposure through crypto-related stocks or Exchange Traded Funds (ETFs) is allowed, this offers a limited and often less efficient pathway to participate in this rapidly evolving asset class.[3, 6]
This stands in stark contrast to the opportunities available to citizens in other leading financial jurisdictions, notably the United States. US citizens are increasingly able to invest in cryptocurrencies and other alternative digital assets, such as physical gold and silver, within their 401(k)s and Crypto IRAs through platforms like iTrustCapital.[7, 8, 9, 10] These accounts offer significant tax advantages, allowing for tax-deferred or even tax-free growth on gains, providing a powerful incentive for long-term wealth accumulation.[7]
The implications of this disparity for UK citizens are profound:
* Lost Opportunity for Tax-Advantaged Growth: UK investors are being denied the opportunity to grow their retirement savings in a high-growth asset class with the same tax efficiencies enjoyed by their US counterparts.
* Competitive Disadvantage for the UK: This regulatory gap directly contradicts the Government's stated ambition to make the UK a "global hub" for cryptocurrency investment. If UK pension schemes cannot accommodate direct digital asset investment, it risks the UK falling behind other nations in attracting and retaining talent and capital in this crucial sector.
* Suboptimal Investment Strategies: UK investors are forced into less direct or less efficient proxy investments, potentially limiting their exposure to the full potential of digital asset market gains.[6]
The UK has a strong foundation as a global leader in financial services and fintech innovation.[1] We have already seen the Bank of England explore the use cases for Distributed Ledger Technology (DLT) in areas like improved collateral mobility and fund management through initiatives such as the Digital Securities Sandbox (DSS). This demonstrates a clear understanding of the technology's potential.
I urge you to advocate for a review of the current FCA regulations governing SIPP investments. I believe there is a compelling case to:
* Align SIPP rules with the UK's "global hub" ambition by allowing direct investment in regulated digital assets and derivatives within pension wrappers.
* Explore models from other jurisdictions, such as the US Crypto IRA framework, to understand how tax-advantaged digital asset retirement accounts can be safely and effectively implemented.
* Consider a "Digital Assets Sandbox" specifically for pension investments, leveraging the insights gained from initiatives like the DSS to develop a proportionate and balanced regulatory framework.[1]
Modernizing our pension investment rules to embrace digital assets is not just about financial opportunity; it's about ensuring the UK remains competitive, fosters innovation, and empowers its citizens with the tools to build robust retirement portfolios in the 21st century.
I would be grateful for your consideration of this important matter and welcome the opportunity to discuss it further at your convenience.
Yours sincerely,
RS. Lewis
https://www.linkedin.com/in/ron-xrpeasy-lewis-42999a70?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app
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