Joint Framework Seeks Regulatory Alignment

The US Treasury Department and UK HM Treasury issued recommendations and a joint statement outlining shared priorities for digital assets. The effort, conducted through the Transatlantic Taskforce established in 2025, focuses on creating conditions for regulated stablecoins to operate more effectively across borders while maintaining strong safeguards.

Both governments stressed the value of stablecoins as tools for payments, settlements, and capital markets. They called for regulators including the Bank of England, Financial Conduct Authority, SEC, and CFTC to coordinate on approaches that deliver similar results for similar risks and activities.

Stablecoin Standards and User Protections

The recommendations emphasize consistent standards for payment stablecoins. Authorities in both countries are directed to support frameworks that ensure reserves provide real protection without creating unnecessary barriers. This includes transparent disclosure of holder rights and mechanisms for timely access to value.

In the United States, work continues on implementing the GENIUS Act, which establishes federal requirements for reserve backing, oversight, and audits for larger issuers. Federal Reserve Chair Kevin Warsh noted progress toward upcoming deadlines for proposed rules during recent congressional testimony.

The UK has advanced its own stablecoin regime through the Financial Conduct Authority, with additional oversight for systemic tokens involving the Bank of England. The joint approach seeks mutual recognition pathways where approval in one jurisdiction can facilitate entry into the other, subject to local requirements.

Focus on Tokenized Finance and Economic Potential

Beyond stablecoins, the taskforce recommended coordinated regulatory approaches for tokenized assets. This includes identifying shared standards on custody, settlement finality, and collateral use. A private-sector-led group is proposed to test cross-border applications and use cases over the coming year.

The FCA and SEC are encouraged to explore options for facilitating cross-border capital raising through tokenized markets. These steps aim to reduce fragmentation and support broader adoption of digital asset infrastructure in both financial centers.

A UK government-backed report projects that successful development of tokenization could add up to $44 billion to annual economic output by 2035, contingent on the UK maintaining a leading position, global scaling, and strong domestic growth. The report calls for issuing tokenized bonds by early 2027 and advancing blockchain testing for financial transactions.

Broader Context and Next Steps

This transatlantic cooperation arrives amid ongoing legislative and regulatory activity in both countries. The joint recommendations provide a direction for regulators to develop practical alignment while preserving national flexibility. Officials from both sides highlighted the importance of strong investor protections alongside opportunities for innovation in modern financial systems.