TLDR
- UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent agreed to deepen crypto collaboration during Tuesday meeting
- Major crypto firms including Coinbase, Circle, and Ripple joined discussions alongside traditional banks like Barclays and Citi
- Partnership will prioritize stablecoin regulation, following Trump administration’s crypto-friendly policy direction
- UK industry groups had pushed government to include digital assets in US-UK Tech Bridge initiative
- British officials aim to attract American investment and give UK companies better access to US crypto markets
UK and US Strengthen Crypto Partnership in High-Stakes Policy Meeting
The United Kingdom and United States have agreed to enhance cooperation on cryptocurrency regulation following crucial discussions between senior government officials and industry leaders. The partnership represents a shift toward more collaborative digital asset oversight between the two financial powerhouses.
UK Chancellor Rachel Reeves met with US Treasury Secretary Scott Bessent on Tuesday to discuss strengthening coordination on crypto policy. The high-level meeting brought together representatives from major cryptocurrency companies and traditional financial institutions.
Key industry players participated in the discussions including executives from Coinbase, Circle Internet Group, and Ripple. Traditional banking giants Bank of America, Barclays, and Citi also attended the policy talks.
Stablecoins Drive Partnership Focus
The collaboration will center on stablecoin regulation, an area that has become a key priority for President Trump’s administration. The Trump family’s business interests in the digital asset sector have elevated stablecoins to a prominent position in US policy planning.
Last week, UK crypto advocacy groups successfully lobbied the government to include digital assets in the US-UK Tech Bridge. This bilateral initiative covers advanced technologies including artificial intelligence, cybersecurity, and quantum computing.
The advocacy groups warned that excluding cryptocurrency from the partnership could leave Britain behind other regions advancing digital finance innovation. Their pressure campaign helped secure crypto’s inclusion in the broader technology cooperation framework.
Cassie Craddock from Ripple stated the planned cooperation has “the potential to set a template for international cooperation in our industry.” She emphasized the UK’s position as a leading global financial center ready to become a digital asset hub.
Banking Restrictions Fuel Reform Push
UK banks have created barriers to crypto adoption through payment restrictions and delays. Recent surveys show 40% of crypto investors faced blocked or delayed payments to digital asset providers.
These banking limitations stem from concerns about market volatility, fraud risks, and potential scams. The restrictions have frustrated crypto users seeking easier access to digital asset services.
The Bank of England has proposed limiting individual stablecoin holdings to between £10,000 and £20,000. Industry groups criticized these limits as difficult and expensive to implement.
British officials hope aligning with US crypto regulations will provide UK companies better access to American markets. The partnership could also attract increased investment from US-based firms and institutions.
Digital securities sandboxes are already under development between the two countries. These testing environments will allow blockchain companies to trial new technologies under regulatory supervision for two-year periods.
Recent research by Aviva insurance found growing crypto interest among British adults. About 27% of surveyed adults expressed willingness to include cryptocurrency in retirement investment portfolios.
The Reeves-Bessent meeting occurred as President Trump arrived in the UK for scheduled diplomatic visits and meetings with British officials.
