UK and US Set to Align Crypto Regulations Focused on Stablecoins

TLDR

• The UK and US are preparing to announce closer cooperation on crypto regulations, with a focus on stablecoins.
• UK officials believe aligning crypto regulations with the US could boost market access and attract more investment.
• The discussions included key players like Coinbase, Circle, Ripple, Citi, and Barclays, emphasizing the importance of regulatory clarity.
• Both countries aim to establish a joint digital securities sandbox to foster innovation in blockchain applications.
• Critics warn that the UK risks falling behind global competitors unless it accelerates its approach to crypto regulations.

The UK and the United States are set to announce closer cooperation on digital assets, focusing on stablecoins. The collaboration follows recent discussions between UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent. The talks took place in London and included key crypto firms like Coinbase, Circle, and Ripple, along with major banks such as Citi and Barclays.

Stablecoins at Center of UK–U.S. Talks on Capital Markets Alignment

Stablecoins will play a central role in the UK-U.S. cooperation on crypto regulations. These digital tokens, pegged to traditional currencies, have drawn significant attention from both governments. The UK views aligning regulations with the U.S. as an opportunity to gain access to global financial markets while attracting U.S. investments.

UK officials hope that closer cooperation with the U.S. will enhance Britain’s position in the competitive financial services sector. There is concern that British companies might be left behind as some seek higher valuations in the U.S. This agreement could allow UK firms to expand into the U.S. market with greater regulatory clarity.

Discussions centered on aligning regulatory approaches to crypto assets. According to a person familiar with the talks, participants agreed there was a “huge opportunity” for the UK in digital assets. This potential for growth hinges on a consistent regulatory framework between the two countries.

UK Faces Pressure to Accelerate Crypto Regulation

The ongoing debate over stablecoin regulations continues to shape the future of digital money. Both the UK and the U.S. are seeking to set clear rules to avoid the risk of falling behind global competitors. In the U.S., Wyoming has become the first state to launch a government-backed stable token, while Congress passed the GENIUS Act to regulate stablecoins.

Despite some regulatory progress in the U.S., the UK has moved more slowly. Critics argue that the UK risks losing its competitive edge if it does not accelerate regulatory clarity. Former Chancellor George Osborne warned that the UK must act now or fall behind global leaders like the U.S. and Singapore.

Meanwhile, the U.S. is actively moving forward with new proposals. These include new federal rules for stablecoin issuers like Tether, which plans to launch USA₮, a U.S.-regulated stablecoin. British regulators, however, face pushback from the crypto industry, with companies concerned that overly restrictive measures could stifle growth.

Reeves emphasized that the UK must stay competitive in digital assets. She has called for closer alignment with U.S. policies, particularly in the realm of capital markets. Both countries have recognized that a joint digital securities sandbox could drive innovation and help businesses navigate the evolving landscape of crypto regulations.

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