UK Seeks Deeper US Ties on Crypto Regulation
Great Britain is taking a significant step towards aligning its crypto regulations with those of the United States, as it faces pressure to keep up with global competition. This move comes after a high-ranking meeting between Chancellor Rachel Reeves and Finance Minister Scott Bessent in London. According to reports, the UK is preparing to present a new agreement with the US via crypto regulation, with a focus on stablecoins, capital markets, and sandboxes for digital assets.
The UK’s decision to strengthen its regulatory relationship with the US in the field of digital assets, such as cryptocurrencies and stablecoins, is seen as a reaction to growing concern and political pressure in the country. The UK is worried that its companies may fall behind due to the US’s more favorable crypto regulations, which have been influenced by Trump’s pro-crypto posture. This has accelerated the US adoption of crypto, and British companies are eager to keep up.
Regulatory Clarity and Cooperation
The move towards a transatlantic partnership is a response to the “crypto brain drain,” where companies are listing or operating in the US to take advantage of more friendly regulations and deeper capital markets. The London meeting, which included representatives from crypto companies such as Ripple, Coinbase, and Circle, as well as traditional banks like Citi, Bank of America, and Barclays, focused on regulatory orientation and a common political interest in the institutionalization of cooperation with digital assets.
Chancellor Rachel Reeves has previously stated that the UK would deepen cooperation with the US, concentrating on consumer protection and innovation. Sources indicate that the current conversations gained urgency last week ahead of Donald Trump’s state visit, with crypto industrial groups sending an open letter to the government asking for the inclusion of blockchain and digital assets in the “Tech Bridge” contract with the US.
Digital Sandbox Initiative
In addition to stablecoins and a broader crypto orientation, both nations will also examine the development of common digital securities sandboxes. This will allow companies to test blockchain-based financial services under the supervisory authorities of both countries. The US’s pro-crypto stance, influenced by Trump, has reportedly led to a broader acceptance of digital assets in US political circles. The UK believes that closer agreement with the US could increase access to deeper liquidity and attract larger American investments in the UK’s tech and fintech sectors.
While the UK still lacks a legal crypto framework, such as the EU’s MiCA regulation, the partnership could redefine the regulatory and investment environment of crypto and advanced technologies in the UK. Legislative regulations or a uniform license system must be introduced to bring clarity to the sector. If formalized, the partnership could be a significant step forward for the UK’s crypto industry.
For more information on the UK’s efforts to deepen its ties with the US on crypto regulation, visit https://crypto.news/uk-seeks-deeper-us-ties-on-crypto-regulation-report/
