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- The United States and United Kingdom are strengthening cooperation on stablecoins, tokenized assets, and digital finance.
- Both governments say regulated stablecoins can improve financial efficiency while maintaining strong consumer protections.
- Regulators are also working on implementing the GENIUS Act as the U.S. prepares new stablecoin rules.
The United States and the United Kingdom are expanding their collaboration on digital assets, signaling growing support for regulated stablecoins and tokenized financial infrastructure.
In a joint statement released by the U.S. Department of the Treasury and HM Treasury, both governments said they intend to work more closely to shape the future of digital asset markets while reducing regulatory fragmentation between the world’s two largest financial centers.
The announcement was made through the Transatlantic Taskforce for the Markets of the Future, an initiative launched last year to strengthen financial cooperation and promote innovation across both countries.
Stablecoins Take Center Stage
The joint recommendations place significant emphasis on stablecoins, with both governments describing them as a technology capable of making payment systems more efficient, competitive, and accessible.
Officials said they intend to encourage innovation in regulated stablecoins, tokenized deposits, and other blockchain-based financial products while ensuring strong standards for custody, reserve management, and consumer protection.
The statement also calls for legal frameworks that give stablecoin holders a clear claim to reserve assets if an issuer becomes insolvent, helping protect users during bankruptcy or restructuring proceedings.
Regulators Push for Common Standards
The task force encouraged major financial regulators on both sides of the Atlantic to work more closely on digital asset oversight.
In the UK, the Bank of England and the Financial Conduct Authority (FCA) were asked to develop regulatory approaches for tokenized assets. In the United States, similar work has been recommended for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The statement also encourages the FCA and SEC to explore new ways of facilitating cross-border capital raising, potentially making it easier for blockchain-based businesses to access international investment markets.
GENIUS Act Rules Continue Moving Forward
The announcement comes as U.S. regulators continue implementing the GENIUS Act, the landmark stablecoin legislation enacted last year.
The law requires qualifying stablecoins to be fully backed by U.S. dollars or similarly liquid assets, establishes reserve requirements, mandates annual audits for the largest issuers, and creates a regulatory framework for foreign stablecoin providers operating in the United States.
Federal agencies are currently drafting the detailed rules needed to implement the legislation.
During a House Financial Services Committee hearing, Federal Reserve Chair Kevin Warsh said regulators are working quickly to meet the upcoming implementation deadline, stating that officials are “racing” to complete the rulemaking process.
The joint U.S.-UK initiative highlights the growing international focus on creating consistent digital asset regulations. As both countries work toward aligned standards for stablecoins and tokenized finance, the collaboration could play a significant role in shaping the next generation of global financial infrastructure.
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