Stacy Pereira
- The U.K. and the United States are preparing to announce enhanced cooperation on cryptocurrencies and other digital assets, according to the Financial Times.
- The two governments want closer alignment of regulatory frameworks on stablecoins and better access for U.K.’s digital asset companies.
- The two countries will also facilitate a joint digital securities sandbox to test blockchain applications in financial services.
According to a Financial Times report, the U.K. and the United States are preparing to announce enhanced cooperation on cryptocurrencies and other digital assets. The details of the deal would be discussed in a meeting on Tuesday between U.K. Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent.
Among those present in the meeting were representatives from leading crypto firms like Coinbase, Circle, Ripple, and major banks, including Citi, Bank of America, and Barclays. This was viewed as a “last-minute” organisation, catalysed by pressure from industry groups who had urged Reeves’s government to ensure that digital assets and blockchain were part of any U.K.-U.S. deal. The meeting was also a precursor to President Donald Trump’s state visit to the U.K. this week.
Focus on stablecoins and regulation alignment
The report suggests that a key focus of the planned agreement between the two countries will be on stablecoins, crypto tokens pegged to fiat currencies. The two governments want closer alignment of regulatory frameworks, especially for stablecoins, and smoother access for U.K. digital asset companies into the U.S. to get deeper, more liquid financial markets.
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Reeves reportedly believes that harmonised regulations will help U.K. firms attract more U.S. investment. This could also help in stopping the slew of British companies flocking to list in U.S. markets for better valuations.
Joint digital securities sandbox
Another element under development is a joint digital securities sandbox. This would allow firms in both jurisdictions to test blockchain applications in financial services. Under discussion could be the issuance, trading, and settlement of tokenised securities, however, under a lighter regulatory perimeter. The aim is to demonstrate how distributed ledger technologies can enhance capital markets infrastructure, while maintaining investor protection and financial stability.
These proposals come at a time when U.K. is being cautious on the regulatory front as compared to the more pro-crypto posture in the US under the Trump administration. British crypto firms and some politicians have expressed concern that UK rules are making it harder to compete.
