Discussion Regarding Alignment of Cryptocurrency Regulation Holds Between UK and U.S. Officals
UK and US Prepare to Strengthen Cooperation on Cryptocurrency Regulation
In a significant move aimed at boosting the adoption of digital assets, the UK and US governments are working together to develop digital securities sandboxes. This collaboration will allow companies to test blockchain technology in financial services under regulatory supervision, as both countries seek to align their regulations and provide greater access to American markets.
The slow adoption of cryptocurrencies in the UK's banking sector has been a concern, and this partnership is seen as a step towards addressing this issue. Cassie Craddock, Managing Director of UK & Europe at Ripple, has expressed optimism about the planned cooperation.
The UK Chancellor, Rachel Reeves, believes that this alignment of regulations with the US could attract more US investment. Meanwhile, US Securities and Exchange Commission Commissioner Hester Peirce had previously proposed a "cross-border sandbox" for crypto firms to operate under regulatory oversight for a two-year period.
Any agreement between the two countries is likely to include provisions for stablecoins, a digital currency that is pegged to a fiat currency or other assets. The UK has proposed a framework that treats crypto exchanges, dealers, and agents similarly to traditional finance firms, with strong compliance checks focused on transparency and consumer protection.
However, the Bank of England's proposal to limit individual stablecoin holdings to between £10,000 and £20,000 has been criticized by industry groups. They argue that such restrictions would be difficult and expensive to implement.
Representatives from major crypto companies Coinbase, Circle Internet Group, and Ripple, alongside executives from traditional financial institutions like Bank of America, Barclays, and Citi, attended the talks. The meeting was reportedly arranged "last-minute" after crypto advocacy groups urged the UK government to adopt a more open stance towards the industry.
Approximately one in five UK adults (about 11.6 million people) hold or currently hold cryptocurrencies, with about two-thirds still owning digital assets. Excluding digital assets from the US-UK Tech Bridge could leave the UK behind as other regions shape the future of finance, according to industry groups.
The timing of these discussions coincides with President Trump's arrival in the UK, potentially indicating the high priority both administrations place on digital asset collaboration. The specific US government officials representing the US in negotiations with the UK to strengthen cooperation in cryptocurrencies are not yet clear.
A survey of 2,000 UK adults revealed that approximately 27% are open to including cryptocurrencies in their retirement funds, with potential for higher returns as a primary motivation. Approximately 40% of crypto investors in the UK reported that their banks had either blocked or delayed payments to crypto providers.
Industry groups have urged the British government to include stablecoins and tokenization in the US-UK Tech Bridge, a bilateral initiative for advanced technology collaboration. The Trump administration's approach to crypto is seen as "vital to unlocking adoption" in Britain, according to sources familiar with the discussions.
As the UK and US work towards strengthening their cooperation on cryptocurrency regulation, it remains to be seen how this collaboration will shape the future of digital assets in both countries.
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