UK and US Forge Historic Crypto Task Force to Reshape Global Digital Assets Regulation

Two financial superpowers unite to tackle crypto's wild west era head-on.

The Regulatory Game-Changer

Britain's financial authorities and U.S. regulators just launched a joint task force that could finally bring order to cryptocurrency markets. This transatlantic partnership aims to create the first comprehensive framework for digital assets—potentially setting the standard for how nations worldwide approach blockchain regulation.

Why This Matters Now

With crypto markets maturing and institutional money flooding in, regulators can no longer afford to watch from the sidelines. This collaboration signals that major economies recognize digital assets aren't just a passing trend but a fundamental shift in global finance. The timing couldn't be more crucial as decentralized finance protocols challenge traditional banking models.

The Balancing Act

The task force walks a tightrope between fostering innovation and preventing another FTX-style collapse. They'll need to address everything from stablecoin oversight to DeFi protocols—all while avoiding the regulatory overreach that could stifle the very technology they're trying to harness. Traditional banks are watching nervously as this partnership could legitimize crypto competitors they've long dismissed as fringe players.

Market Implications

Clear rules typically attract institutional capital, but crypto purists worry about centralized control creeping into decentralized systems. The task force's success might ultimately be measured by whether they can protect consumers without killing the disruptive potential that makes blockchain technology revolutionary. After all, nothing says 'financial innovation' like two governments forming a committee to discuss it.

Transatlantic Crypto Task Force Targets Unified Approach to Digital Asset Regulation

According to a statement from the UK government, the task force will focus on enhancing collaboration across capital markets while laying the groundwork for a unified approach to digital assets.

It will explore short- and medium-term options for cooperation while legislation and regulatory regimes continue to develop, as well as long-term opportunities to advance wholesale digital market innovation.

The announcement followed a high-level meeting in London between UK Chancellor of the Exchequer Rachel Reeves and U.S. Treasury Secretary Scott Bessent.

The meeting hosted on September 17 was also attended by executives from major crypto firms, including Coinbase, Circle, and Ripple, alongside global banks such as Citi, Bank of America, and Barclays.

The UK and US Forge Crypto Alliance, with @hmtreasury and @USTreasury announcing closer cooperation on digital assets and stablecoins. #Crypto #Stablecoins https://t.co/vzaNXQZv5c

Both governments said the initiative shows their commitment to ensuring capital markets remain competitive and open while adapting to the rapid pace of technological change.

The task force will be chaired jointly by officials from HM Treasury and the U.S. Treasury, with participation from regulators including the Financial Conduct Authority (FCA) and the Securities and Exchange Commission (SEC).

It is expected to report back to both finance ministries through the UK–US Financial Regulatory Working Group within 180 days. Industry experts will also be consulted to ensure recommendations reflect the priorities of businesses and investors.

Key areas under review include the interoperability of regulatory frameworks, particularly around asset custody, anti-money laundering standards, and stablecoin oversight.

Stablecoins are expected to be a central focus, with officials noting that aligning UK rules with U.S. standards could improve cross-border access for firms and draw more American investment into Britain’s financial sector.

The MOVE comes as the UK faces pressure to remain competitive in global finance amid concerns about companies shifting listings to U.S. markets in search of higher valuations.

For Washington, the initiative reflects the TRUMP administration’s push toward technology-neutral digital asset regulation, a stance intended to accelerate innovation while maintaining financial stability.

Recent months have seen increasing calls from industry groups on both sides of the Atlantic for governments to provide clarity on digital asset regulation.

Sources familiar with the London discussions said the agreement was finalized at short notice, following letters from crypto associations urging the UK to prioritize digital assets during Trump’s visit.

By strengthening transatlantic ties, the task force aims to reduce burdens for UK and U.S. firms raising capital across borders while laying the foundation for a coordinated approach to digital assets.

Officials said the initiative reaffirms the “deep and historic connection” between the two economies and represents a milestone in preparing markets for the next phase of financial innovation.

At the time of the announcement, both governments emphasized that stability, trust, and innovation WOULD guide the group’s work, with the first set of recommendations expected in early 2026.

Chainalysis Ranks U.S. Second in Adoption as UK Pushes Faster Crypto Approvals

The launch of the UK–US crypto task force comes as both countries advance their domestic approaches to digital asset regulation.

The latest Chainalysis Global Crypto Adoption Index ranks the United States second worldwide, reflecting strong institutional participation and momentum from regulatory progress.

The UK stands at 11th but remains one of the largest global hubs, serving as Coinbase’s second-biggest market after the U.S. Industry heavyweights have poured investment into London while lobbying for clearer rules.

Britain’s FCA has recently accelerated reviews, cutting approval times by two-thirds. Since April, five firms, including BlackRock and Standard Chartered, have received registration, lifting approval rates to 45% compared to less than 15% over the past five years.

Still, applications have declined as stricter rules take hold, dropping from 46 in 2022–23 to 26 in 2024–25.

Further tightening is underway. From January 2026, crypto platforms must collect detailed customer information on every trade, in line with the OECD’s global reporting framework.

The FCA is also consulting on whether crypto firms should face the same standards as banks, including governance, financial crime controls, and consumer protection duties.

Across the Atlantic, in the U.S., lawmakers are considering a Strategic Bitcoin Reserve. Congress is reviewing a bill requiring the Treasury to assess the feasibility of a Strategic Bitcoin Reserve, drawing on the government’s holdings of up to 207,000 BTC seized from cybercrime cases.

Meanwhile, the WHITE House hosted its first crypto summit, underscoring efforts to embed digital assets within the U.S. financial system.