The UK and the US have agreed to pursue closer coordination on stablecoin regulation, cross-border payments, and tokenized financial markets.
summation
- UK and US regulators seek coordinated stablecoin rules while maintaining competition and cross-border market access.
- Stablecoins used as currencies must have one-to-one reserves and protect holders during issuer bankruptcy proceedings.
- Officials will explore pathways that would allow regulated stablecoins from both jurisdictions to enter other markets.
The two governments also plan to explore ways for regulated stablecoins issued in one country to access markets in other countries.
This commitment is outlined in the UK and US joint statement on stablecoins published on July 14th. The statement forms part of the recommendations of the Transatlantic Task Force for Future Markets, established by the two governments in September 2025.
The UK and the US have established common stablecoin principles.
Both governments have said stablecoins can support payments, settlements and capital markets transactions when regulators apply appropriate safeguards. They plan to pursue “comparable outcomes for comparable risks and activities” while allowing each country to develop requirements according to its own legal framework.
This approach does not require the same regulations. Instead, authorities want to reduce unnecessary differences that can block cross-border activity. The government also said it would avoid rules that impose costs disproportionate to the risks or create unnecessary barriers to new competitors.
As crypto.news reported, the agreement comes as stablecoin rules remain a key policy issue in Washington. U.S. lawmakers and banking groups continue to discuss how digital dollar products should interact with traditional banking and financial markets.
Stablecoins must maintain at least 1:1 support.
The joint statement states that fiat-denominated stablecoins must have at least $1 per issued unit or its equivalent in high-quality liquid assets. Each country determines which reserve assets are eligible according to its domestic framework.
Issuers must also separate their holdings from their own corporate funds. The government said holders should receive redemption in a timely manner and be given clear information about their legal rights. If the issuer fails, the holders should have a protected claim on the reserves, including priority over other creditors where national law allows.
This principle is broadly consistent with the direction of U.S. stablecoin regulation under the GENIUS Act. As the United States prepares a federal framework for stablecoin payment issuers, the Treasury Department has begun proposing implementation rules starting in 2026.
Governments seek cross-border stablecoin access.
The UK and US plan to explore clear pathways to allow stablecoins regulated in one jurisdiction to reach customers and markets in other jurisdictions. All access agreements are subject to the laws and regulatory procedures of each country.
Both governments will also support legally regulated digital asset companies to have fair and risk-based access to banking and other financial services. They said stablecoins could serve as a means of payment in securities and commodities markets, provided companies meet the necessary safeguards.
This statement does not authorize any specific stablecoin to create automatic mutual recognition or for cross-border distribution. Regulators must develop the legal pathways and standards necessary to implement the plan.
Tokenized finance forms part of a broader collaboration.
This agreement extends beyond stablecoins. In line with the broader Transatlantic Task Force recommendations, the two countries plan to work with private sector groups to test cross-border use of tokenized assets for a year.
The SEC, CFTC, FCA and Bank of England will seek a common approach in the areas of tokenized securities settlement, the use of stablecoins or tokenized money market funds as collateral on clearinghouses.
Following the recommendations, both countries are free to complete their own regulatory processes. Their goal is to provide regulated stablecoins and tokenized financial products with a clear path between the two major global financial markets, while reducing cross-border friction.