Key Highlights
- US Department of the Treasury and UK’s HM Treasury published a coordinated 10-point framework for digital asset oversight
- The partnership seeks to eliminate regulatory barriers for tokenized securities and stablecoins operating across American and British markets
- Industry leaders will form a working group to pilot cross-border tokenization initiatives
- The joint declaration specifies that stablecoins must maintain “fully backed on at least a one-to-one basis by high-quality, liquid assets”
- Economic projections suggest the UK economy could see annual gains reaching $44 billion by 2035 through tokenization leadership
Washington and London have unveiled a collaborative framework designed to harmonize regulatory approaches for tokenized assets and digital currencies. Released Tuesday through a joint effort between the US Department of the Treasury and HM Treasury, the initiative emerged from discussions within the Transatlantic Taskforce for Markets of the Future.
UK and US Seek Stablecoin Regulatory Convergence and Cross-Border Market Access
The UK and US governments issued a joint statement supporting closer coordination on stablecoin regulation and their use in cross-border payments, settlement and capital markets. Stablecoins held outā¦ pic.twitter.com/Y5c77Jqs60
ā Wu Blockchain (@WuBlockchain) July 14, 2026
The comprehensive 10-point framework addresses both digital assets and conventional capital markets. Rather than establishing new legislation, the document highlights priority areas where American and British regulators commit to enhanced cooperation.
International Tokenization Emerges as Priority
Among the central recommendations is establishing a private-sector-driven working group to pilot international applications for tokenized assets. Key regulatory bodies expected to participate include the US Securities and Exchange Commission, the Commodity Futures Trading Commission, the UK’s Financial Conduct Authority, and the Bank of England.
Both nations are pursuing unified methodologies for settling tokenized securities. Authorities will investigate whether stablecoins or tokenized money market funds could serve as acceptable collateral within financial systems.
The framework additionally advocates for reassessing international banking standards related to crypto assets. The objective involves developing policy structures that allow stablecoins, tokenized bank deposits, and alternative digital money forms to function harmoniously.
Coordinated Stablecoin Standards Emerge
The two governments released a unified statement supporting international stablecoin innovation. According to the declaration, stablecoins “should be fully backed, on at least a one-to-one basis, by high-quality, liquid assets.”
This position aligns with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, enacted in 2025. Implementation of that legislation awaits final regulatory approval before its scheduled January 2027 effective date.
The joint declaration emphasized that both governments plan to “tailor its requirements to seek comparable outcomes for comparable risks,” while preventing market distortions or hindering international competition.
An independent analysis commissioned by UK government-affiliated industry experts projects Britain could boost its annual economic output by as much as $44 billion by 2035. Achieving this target requires the UK establishing itself among premier tokenization jurisdictions while maintaining adoption rates comparable to major competitors.
The analysis urged British authorities to launch tokenized government bonds before the end of Q1 2027 and commence pilot programs for blockchain-based financial transactions.
Regarding conventional finance, the framework encourages the SEC and FCA to streamline international capital formation processes. Oversight bodies will also examine derivatives market regulation, market data accessibility, and global accounting frameworks.
Treasury Secretary Scott Bessent emphasized that these recommendations demonstrate both nations’ unified dedication to fostering economic expansion, technological advancement, and market competition.
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