The United Kingdom and the United States are moving toward closer cooperation on digital asset regulation, with UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent holding high-level discussions this week on aligning crypto frameworks to foster innovation, according to the Financial Times.
The talks reportedly involved key crypto industry players, including Coinbase, Ripple, and Circle, as well as executives from Barclays, Citi, and Bank of America. The informal agreement, finalized late Tuesday, follows growing pressure from UK crypto advocacy groups urging the government to shift from its cautious regulatory stance and adopt a more open, US-style approach—similar to that of the Trump administration, which favored stablecoin innovation.
Stablecoins are expected to be central to the agreement, with both nations exploring regulatory alignment to ease cross-border crypto adoption. The move comes amid backlash against the Bank of England’s recent proposal to cap individual stablecoin holdings between £10,000 and £20,000, a plan critics argue is costly and complex to enforce.
UK crypto investors also face hurdles from domestic banks. Nearly 40% of surveyed crypto users reported that banks blocked or delayed transactions to crypto platforms, often citing fraud and volatility concerns.
Despite the challenges, the UK has proposed a new regulatory framework to treat crypto firms like traditional financial entities—emphasizing transparency and consumer protection. Reeves believes that harmonizing rules with the US could unlock American investment, open US market access, and encourage domestic innovation.
As part of this bilateral effort, digital securities sandboxes are being developed to allow financial institutions to test blockchain technologies in real-world settings. Industry leaders suggest this could position the UK as a global fintech leader, provided regulations strike the right balance.
A recent Aviva study revealed growing crypto interest among UK citizens, with 27% open to including digital assets in retirement portfolios and over 11 million Britons having engaged with crypto in some form—signaling strong public momentum behind policy shifts.
