American and British regulators are stepping up cooperation on cryptoassets, tokenisation, payments and artificial intelligence as they seek to modernise two of the world’s major financial markets.
The U.S. Department of the Treasury published a joint statement on 4 August outlining discussions held at the U.S.-U.K. Financial Regulatory Working Group meeting in London on 8 July. The talks focused on coordinating regulatory approaches, reducing unnecessary cross-border barriers and strengthening financial resilience.
Senior officials from both Treasury departments took part, alongside representatives of the Bank of England, the Federal Reserve, the Financial Conduct Authority and several US financial regulators. Digital assets were central to the meeting, which also covered payment systems, financial stability, artificial intelligence, capital markets, banking supervision and international regulatory cooperation.
The Treasury said: “U.S. authorities provided an update on implementing the GENIUS Act for stablecoins and on digital asset market structure.”
UK officials presented their Wholesale Financial Markets Digital Strategy and confirmed the appointment of Christopher Woolard CBE as the United Kingdom’s Wholesale Digital Markets Champion.
The meeting came ahead of recommendations published on 14 July by the Transatlantic Taskforce for Markets of the Future. The taskforce called for less friction in cross-border activity, closer supervisory cooperation, greater opportunities for raising capital and clearer rules for tokenised financial products and services.
Both countries have backed regulatory frameworks intended to encourage digital money while protecting consumers, market confidence and financial stability. A joint statement on stablecoins supports their use across borders, consistent treatment of comparable risks and reserves equal to at least 100% of the value of stablecoins presented as money, held in high-quality and liquid assets.
Stablecoins are digital assets designed to maintain a stable value, usually through reserves linked to fiat currencies or other assets. Their increasing use in payments, trading and settlement has made them a key focus for regulators.
The Federal Deposit Insurance Corporation (FDIC) has proposed standards for implementing the GENIUS Act. The proposals address reserves, redemptions, capital, liquidity, risk management, custody and safekeeping, moving US policy from broad legislative authorisation towards detailed operating rules for regulated payment stablecoin issuers.
The proposed framework includes eligible reserves held on a one-to-one basis and redemption provisions designed to give customers predictable access to their funds. For bank stablecoin issuers, the FDIC also expects redemptions within two business days and sets supervisory requirements covering financial and operational risks.
In the UK, authorities are working towards a unified framework for tokenised wholesale markets. Blockchain-based records could represent securities, deposits, collateral and other financial instruments, with the government aiming to improve post-trade processing, the movement of collateral, market efficiency and compatibility between financial systems.
A 54-company industry initiative has brought major financial institutions into the process. Participants include BlackRock, JPMorgan, exchanges, asset managers and technology providers. The UK’s institutional tokenisation task force is also examining commercial uses and regulatory arrangements for digital securities, tokenised funds and blockchain-based settlement.
Payment policy remains a major part of the bilateral programme. Officials support regulated private digital money for use across international markets, while the two countries’ shared approach to cross-border digital payments is intended to prevent fragmented regulation and preserve competition between stablecoins, tokenised deposits and other payment instruments.
The Bank of England has published draft requirements for stablecoins capable of operating at a systemic scale in the UK economy. The proposals include a temporary £40bn issuance limit for each systemic stablecoin, unrestricted access for individuals and businesses, and reserve requirements.
The Financial Conduct Authority published its final cryptoasset rulebook on 30 June, reducing the capital floor for stablecoin issuers.
The Financial Regulatory Working Group is expected to meet again in early 2027. The biannual dialogue, established in 2018, will continue to address regulatory cooperation, investor protection, capital formation, financial stability and the development of fair, orderly and efficient markets.
