Journalist
Hassan Shittu
Journalist
Hassan Shittu
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The UK and the United States are preparing to announce closer cooperation on digital assets, with stablecoins expected to take center stage.
The move follows a meeting on Tuesday between Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent, according to the Financial Times.
The talks, held in London, brought together leading crypto firms such as Coinbase, Circle, and Ripple, alongside major banks including Citi, Bank of America, and Barclays.
Sources familiar with the discussions said the agreement was organized at short notice, prompted by letters from crypto industry groups urging the UK government to put digital assets on the agenda ahead of President Donald Trump’s state visit this week.
Stablecoins at Center of UK–U.S. Talks on Capital Markets Alignment
Stablecoins, digital tokens pegged to traditional currencies, are set to be a key element of the cooperation. British officials believe that aligning rules with the U.S. could give UK companies greater access to the world’s deepest financial markets while drawing more American investment into the country.
The push comes at a politically sensitive moment for Britain, amid concerns about London-listed companies moving to New York for higher valuations.
A closer partnership with Washington is seen as a way to counterbalance this trend and ensure the UK remains competitive in the financial services sector.
Under Trump, the U.S. has taken an openly supportive stance toward digital assets, in contrast to the more cautious approach adopted by British regulators. UK crypto companies have warned that this divergence risks leaving them at a disadvantage compared to U.S. rivals.
One person familiar with Tuesday’s meeting said much of the conversation centered on aligning regulatory approaches for digital assets, with participants agreeing there was “a huge opportunity for the UK in digital assets” if cooperation with the U.S. moves forward.
Reeves also raised the issue of capital markets alignment, including digital assets, during a dinner last week with U.S. Ambassador Warren Stephens.
British officials expect regulatory alignment and digital asset cooperation to feature among the announcements tied to political talks between Trump and Prime Minister Sir Keir Starmer on Thursday.
Former Chancellor George Osborne has warned that Britain risks being left behind unless it matches international momentum.
In August, Osborne accused the government and the Bank of England of dragging their feet, comparing today’s moment to the “Big Bang” financial reforms of the 1980s.
He pointed to the U.S., EU, Singapore, Hong Kong, and Abu Dhabi as regions moving faster to set clear rules for crypto and stablecoins.
Alongside the stablecoin focus, officials confirmed that work is underway on a joint UK-U.S. digital securities sandbox. The initiative will allow companies to test blockchain applications in financial services, reflecting growing interest in real-world use cases for distributed ledger technology.
Reeves welcomed Bessent to Downing Street in a post on X, writing, “Together we are delivering investment and opportunity for both our countries.”
Stablecoin Policy Divide Widens Across the Atlantic With New Rules and Proposals
The debate over stablecoins continues to intensify on both sides of the Atlantic as policymakers, regulators, and industry leaders weigh the future of digital money.
In July, UK Chancellor Rachel Reeves underlined the need for Britain’s capital markets to stay globally competitive, referencing U.S. SEC Commissioner Hester Peirce’s earlier call for a joint U.S.-UK digital sandbox.
Such a framework, she said, could allow regulators to monitor activity across both markets while giving firms the ability to serve them simultaneously.
Meanwhile, the U.S. has seen rapid developments. Wyoming became the first state to launch a government-backed stable token, while Congress passed the GENIUS Act, banning stablecoin issuers from paying direct interest.
Banking associations are pushing lawmakers to close what they call a loophole that could allow issuers to offer yield indirectly through exchanges, warning of potential risks to the U.S. deposit base.
Coinbase, however, disputes these claims, calling concerns over “deposit flight” a myth.
Tether has also announced plans for USA₮, a U.S.-regulated stablecoin backed by Anchorage Digital and Cantor Fitzgerald, in line with new federal rules.
In the UK, momentum is building around regulation. A petition calling for a pro-innovation strategy for blockchain and stablecoins has surpassed 5,600 signatures after Coinbase urged its customers to sign. At the same time, the Bank of England’s proposal to cap stablecoin holdings has drawn backlash from the industry, which warns that the plan risks stifling growth and undermining competitiveness.
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