- UK-US digital asset talks aim to align regulations and boost cross-border investment.
- Stablecoins are expected to be prioritized, unlocking liquidity and market access in the UK.
- Joint digital securities sandboxes could enable cross-border blockchain testing safely.
The US and UK prepared a new cooperation framework on digital assets, with stablecoins as the lead item and capital-markets access as the prize. The push followed meetings between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, joined by Coinbase, Circle, Ripple and major banks.
Officials in London framed alignment with Washington as a way to pull more American investment into UK markets and stop listings from drifting to New York. The US side cast the move as consistent with the Trump administration’s pro-crypto posture.
Related: UK Trade Associations Push for Blockchain, Stablecoins in US-UK Tech Pact
Why stablecoins are the first domino
Policy teams on both sides see clear, interoperable stablecoin rules as the easiest bridge between TradFi rails and on-chain payments.
In the UK, that discussion now sits beside the Bank of England’s recent idea to cap holdings of “systemic” stablecoins, a plan industry groups criticized as heavier than US/EU baselines. Expect that tension to surface in transatlantic talks. There’s also a timing tailwind: the FCA moved to re-open crypto ETNs to retail on Oct. 8, 2025, widening regulated distribution channels just as policy coordination picks up.
The sandbox piece: test once, scale twice
Beyond stablecoins, officials are also exploring joint “digital securities sandboxes.” These frameworks would allow companies to test blockchain technologies under the watch of both UK and US regulators.
The approach, initially suggested by US Securities and Exchange Commissioner Hester Peirce, could offer regulators valuable data while enabling firms to scale operations across borders.
Related: UK’s FCA to End Retail Ban on Crypto ETNs Beginning October 8
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