Key Takeaways
- One proposal under consideration is the development of a joint sandbox for digital securities
- Reports suggest that a potential deal between the countries is likely to include stablecoins
In a significant development, the United Kingdom and the United States are preparing to announce a plan to work together on the regulation of digital assets.
As per a Financial Times report, Chancellor Rachel Reeves and US Treasury secretary Scott Bessent held talks this week with executives from major crypto firms and leading banks. Participants included Coinbase, Circle, and Ripple, alongside Citi, Bank of America, and Barclays. The meetings were aimed at setting the groundwork for closer alignment between London and Washington on digital asset oversight.
One proposal under consideration is the development of a joint sandbox for digital securities, giving companies the ability to test blockchain-based financial products under supervision.Reports suggest that a potential deal between the countries is likely to include stablecoins
The discussions come at a time when UK policymakers are increasingly concerned about companies shifting operations to the United States in search of more crypto favourable regulations. The meeting comes against the backdrop of crypto advocacy groups urging the UK government on Thursday to adopt a more open stance toward the crypto industry. The groups argued that the country’s cautious approach to the digital asset sector has cost UK, as it lags behind in innovation and policy.
An announcement on the cooperation is expected in the coming days, coinciding with meetings between Prime Minister Keir Starmer and President Donald Trump, as per reports.
In 2022, former UK Prime Minister Rishi Sunak had pledged to turn the UK into a “global hub for cryptoasset technology”, however, it did not lead to more crypto-friendly regulatory moves
Several UK-based firms have chosen to list or expand in America, where investors have been quicker to embrace digital assets. Reeves has made clear that she does not want Britain to fall behind in attracting capital and innovation.
The Trump administration has taken a more welcoming stance toward crypto than its predecessors, with officials signalling support for stablecoins in particular. Reports have even surfaced that Trump himself holds roughly 15.75 billion WLFI tokens worth billions, making crypto one of the most significant source of his fortune.
