UK and US Launch Historic Joint Crypto Taskforce to Align Digital Asset Rules
Key Takeaway: Britain and America create first bilateral crypto taskforce to coordinate regulations and boost cross-border market access. The United Kingdom and United States announced the formation of a groundbreaking joint taskforce on September 22, 2025, to coordinate cryptocurrency regulation and enhance capital market cooperation, marking the first formal bilateral crypto regulatory collaboration between the world’s two largest financial centers.
Transatlantic Partnership Takes Shape
The Transatlantic Taskforce for Markets of the Future emerged from high-level discussions between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent during President Donald Trump’s state visit to Britain. The taskforce has been given 180 days to deliver concrete regulatory recommendations through the existing UK-US Financial Regulatory Working Group.
“By fostering greater transatlantic collaboration, we are laying the groundwork for safer, more resilient markets,” said Dante Disparte, Chief Strategy Officer at Circle. The partnership gained momentum following a crucial meeting at Downing Street that brought together representatives from Coinbase, Circle, Ripple, Citi, Bank of America, and Barclays.
Stablecoins Emerge as Priority Focus
Stablecoins are expected to be the primary focus of collaboration, with both governments recognizing their potential to reshape payment systems. The timing proves particularly significant as the Bank of England faces industry criticism over proposed stablecoin ownership caps that would limit individuals to £10,000-£20,000 holdings and businesses to £10 million.
Tom Duff Gordon, Coinbase’s vice president of international policy, argued that “imposing caps on stablecoins is bad for U.K. savers, bad for the City and bad for sterling,” noting that no other major jurisdiction has imposed such restrictions. The controversy highlights the urgency behind regulatory harmonization efforts.
The US approach under the Trump administration has been markedly more supportive, with the GENIUS Act establishing federal stablecoin frameworks without ownership caps. This regulatory divergence has prompted concerns that Britain could lose competitiveness in the global crypto race.
Industry Backing Drives Framework Development
The taskforce will focus on two primary objectives: developing short-to-medium term collaboration strategies for digital assets while regulatory frameworks are still evolving, and creating mechanisms to reduce compliance burdens for companies raising capital across both markets.
Industry surveys reveal shifting public sentiment, with 27% of UK adults considering crypto for retirement funds and over 40% citing potential high returns as motivation. This growing adoption pressure has reinforced the need for clear regulatory frameworks.
Recent Policy Developments Accelerate Partnership
The Trump administration’s pro-crypto stance includes executive orders creating a Strategic Bitcoin Reserve and establishing a Presidential Working Group on Digital Assets. Washington recently announced that certain GDP data will be issued on blockchain, signaling commitment to distributed ledger integration.
Meanwhile, the UK has accelerated its crypto regulatory timeline. In May 2025, the government proposed a comprehensive legal framework equating crypto entities with traditional financial institutions. The Financial Conduct Authority has expedited approval processes, raising crypto firm registration rates from under 15% to 45% over five years.
Building on Historic Financial Cooperation
The crypto taskforce builds upon decades of UK-US financial cooperation. The countries established a Financial Innovation Partnership in 2019 to promote fintech collaboration and share regulatory expertise. Both nations maintain the world’s largest foreign direct investment relationship, with $1.2 trillion invested in each other’s economies.
The 2023 Atlantic Declaration between leaders established precedent for enhanced economic cooperation on emerging technologies. However, the crypto taskforce represents the first sector-specific bilateral regulatory collaboration of this scale.
Addressing Past Regulatory Challenges
This marks significant evolution from the UK’s previously cautious crypto stance. Former Chancellor George Osborne warned in August 2025 that Britain risked being “completely left behind” on cryptocurrency regulation compared to US progress.
The UK’s fragmented approach historically relied on anti-money laundering rules rather than comprehensive frameworks. Only 41 out of 300 crypto firms successfully registered with the Financial Conduct Authority by early 2023, with over 80% of applications withdrawn or rejected due to inadequate compliance standards.
Global Implications and Future Outlook
The UK-US partnership aims to establish global standards that could influence other financial centers. Officials suggest coordinated regulation will reduce uncertainty for firms and investors while encouraging wider adoption. The collaboration seeks to counterbalance rapid regulatory progress in jurisdictions such as Singapore, Dubai, and Hong Kong.
The 180-day timeline positions both governments to deliver recommendations before mid-2026, when several key digital asset regulatory frameworks worldwide are expected to take effect. Success could cement London and New York’s positions as the twin pillars of global digital finance.
Industry leaders argue that the partnership validates the digital asset sector’s maturation from experimental technology to essential financial infrastructure, potentially accelerating global regulatory harmonization.
Sources: This article is based on reporting from Reuters, Financial Times, and official government announcements from HM Treasury and the US Treasury Department.