Looks like it depends if the utility token is classed as a e-money or not.
utility tokens will fall outside the FCA’s control, except for when they can be defined as electronic money and fall with a new category of e-money tokens.
What exactly then are classed as e-money tokens? Clear as mud.
Another reason why DeFi space is growing exponentially and why I harp on way too much about trying if at all possible to make everything including any bridge onto (and off if two way) the SN as decentralised as possible. Decentralisation sets us free, proven to make all these onerous gotcha jurisdiction rules just go away.