U.S.-U.K. Trade Deal Ignites Crypto Markets—Wall Street Already Taking Credit

Digital asset markets rallied on rumors of streamlined crypto regulations baked into the new transatlantic trade pact. Bitcoin briefly kissed $72K while ETH and altcoins saw double-digit bumps.

Behind the hype: The agreement reportedly fast-tracks mutual recognition of licensing frameworks—a potential game-changer for exchanges operating in both jurisdictions. No more choosing between SEC hostility or FCA purgatory.

Reality check: TradFi giants are already spinning this as ’regulatory clarity.’ Funny how that phrase only appears when their custody solutions are ready to roll.

U.S. and U.K. Trade Pact

Despite Trump’s seemingly uncompromising stance, his administration continues negotiations with multiple countries. Today, it was officially stated that the process is ongoing with 17 out of 18 major trade partners. Now, FT reports that a trade agreement between the U.K. and the U.S. is imminent.

Officials from London and Washington indicate that the deal, designed to eliminate tariffs, is nearing completion. The agreement aims to ease conditions with lower tariff quotas and is expected to be signed before the week ends. Trump’s steel tariff of 25% imposed in February and March, which also included automobiles, is a significant issue the U.K. seeks to resolve.

U.S. Treasury Secretary Scott Bessent, in today’s congressional testimony, suggested that the agreement could be finalized as early as this week, without specifying the involved country. With today’s announcement of a free trade agreement between India and the U.K., the U.K. could emerge as a frontrunner if the issues with the U.S. are also resolved.

Significance for Cryptocurrencies

To address the prevalent uncertainty, Trump needs to demonstrate a willingness to reach a consensus. The only way to achieve this is by signing a concrete agreement. If the U.K. or countries like India and Japan sign trade agreements in the coming days, uncertainty will diminish, and the conditions under which the U.S. will agree will become clearer.

EU officials and various negotiators have previously commented on the U.S.’s unwillingness to compromise. Breaking this negativity and preventing the U.S. from facing isolated opposition globally requires a decisive tariff agreement. Such an environment would undoubtedly be supportive for cryptocurrencies.

BTC is already nearing $95,000. Inflation has significantly decreased, employment is weakening, and PMI data is trending negatively. Under these conditions, removing tariffs would alleviate the Fed’s concerns about further inflation increases through rate cuts. This, in turn, provides another reason for an uptick in crypto. Remember, crypto tends to price in future occurrences early and reacts swiftly.