- The UK and US are set to announce a deepened collaboration on digital assets, focusing on regulatory alignment and innovation.
- High-level discussions between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent have paved the way for this initiative.
- The partnership will utilize the existing UK–US Financial Regulatory Working Group to explore areas like transatlantic digital securities collaboration.
Efforts to bring regulatory clarity to the volatile crypto sector are set to receive a significant transatlantic boost. The UK and US governments are preparing to announce a closer cooperative framework aimed at fostering responsible innovation in digital assets, according to people familiar with the matter.
The initiative follows direct discussions between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent. They have agreed to task the longstanding UK–US Financial Regulatory Working Group with spearheading this new phase of collaboration. A primary focus will be on exploring opportunities for joint work on digital securities, a move that echoes previous proposals by SEC Commissioner Hester Peirce for a cross-border "sandbox."
This push for alignment comes as the UK government seeks to finalize its own comprehensive regime for cryptoassets, with draft legislation already published. The FCA has faced criticism for slow authorisation times, a bottleneck the government hopes to ease. A shared approach with the US could help standardize compliance requirements for firms operating in both of the world's largest financial markets, reducing operational complexity.
Spokespeople for the UK Treasury and the US Treasury did not immediately respond to requests for comment. The announcement, expected soon, signals a concerted effort to prevent regulatory arbitrage and establish a more stable foundation for the industry's growth, balancing the dual mandates of consumer protection and technological advancement.