US & UK Authorities Launch Digital Asset Task Force to Boost Crypto Oversight

In a move to foster closer cooperation on digital assets, authorities from the United States and the United Kingdom have announced the launch of a new transatlantic task force dedicated to exploring collaboration on cryptocurrency regulation and innovative digital markets.

Both the US Treasury Department and HM Treasury disclosed the initiative via official notices on Monday. The effort, which builds on the existing UK-US Financial Regulatory Working Group, aims to produce a comprehensive report with strategic recommendations within six months. The new body, named the Transatlantic Taskforce for Markets of the Future, will examine key issues related to crypto laws, regulation, and the development of wholesale digital markets.

The announcement follows recent reports of a high-level meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent. The discussion focused on deepening collaboration on crypto regulation and may include insights from several leading industry players, with the task force emphasizing the importance of industry input for informed policy development.

While the US Treasury did not explicitly link the new task force to specific legislation, it’s notable that Congress is advancing frameworks, including the GENIUS Act, designed to establish regulation for stablecoins. Signed into law in July, this law requires the Treasury to work alongside the Federal Reserve to craft appropriate regulations for crypto assets.

Coinbase expressed strong support for the initiative, highlighting its commitment to strengthening US-UK digital market ties. Daniel Seifert, Coinbase’s Vice President for Europe, Middle East, and Africa, participated in the discussions between Reeves and Bessent, underlining the industry’s active role in shaping regulatory pathways.

Coordination on crypto regulation?

Both nations have taken steps in 2023 that suggest a desire to shape the evolving crypto landscape. The UK government has signaled a balanced approach, aiming to promote innovation while combating fraud, as Prime Minister Keir Starmer and other officials explore policy frameworks. In contrast, US regulators, under Secretary Bessent, have shown an inclination toward more permissive or scaled-back regulation, with recent discussions around potential government-backed acquisitions of Bitcoin as part of broader crypto reserve strategies.

These developments point to a shared recognition of the transformative potential of blockchain technology, cryptocurrencies like Bitcoin and Ethereum, and the broader cryptocurrency market, even amid differing regulatory philosophies. As the US and UK continue to engage, the future of global crypto regulation may increasingly reflect collaborative efforts focused on fostering innovation while ensuring market stability.