UK and US Forge Historic Task Force to Harmonize Capital Markets with Crypto Regulation

Transatlantic financial giants launch unprecedented collaboration to bridge traditional finance with digital assets.

Regulatory Alignment Breakthrough

The joint task force aims to create synchronized frameworks that allow institutional capital to flow seamlessly between conventional markets and cryptocurrency ecosystems. This marks the first formal effort to eliminate regulatory arbitrage between the world's two largest financial jurisdictions.

Wall Street Meets Blockchain

Banking heavyweights and crypto natives will collaborate on standardized compliance protocols. Expect cross-border settlement systems that leverage blockchain efficiency while maintaining existing compliance structures—because nothing says innovation like adding more paperwork to decentralized technology.

Market Infrastructure Overhaul

The initiative targets clearing mechanisms, custody solutions, and reporting standards that work equally well for stocks and digital tokens. Traditional finance finally acknowledges that crypto isn't going away—they just want to make sure it plays by their centuries-old rulebook.

This partnership could either accelerate mainstream crypto adoption or create the most bureaucratic blockchain implementation in history. Either way, Wall Street's realizing it's easier to join the crypto revolution than fight it—especially when there's profit to be made.

Coinbase offers support to the joint task force

Coinbase has announced its support for the UK and the US collaboration. According to the crypto exchange, “The US and UK have DEEP capital markets […] Cooperation between these two leading financial centres is critical given the profound opportunity facing global capital markets, coming from tokenisation.”

Coinbase has suggested that the two nations focus on tokenising traditional financial assets, stablecoin leadership, and mutual recognition of the regulatory regimes.

According to Coinbase, tokenization will change how global capital markets work and make financial services more accessible to everyone. It will also allow regular investors to trade, borrow, and invest in ways only possible for big investors.

In addition, the company said that the US is leaning into stablecoins as part of its strategic focus on tokenisation of traditional financial assets. On the other hand, the Bank of England is proposing caps that will effectively preclude the use of stablecoins in wholesale markets. 

“The UK needs stablecoin leadership, and a viable Sterling stablecoin, to deliver on the opportunities associated with this partnership, and to drive progress in capital market innovation more generally,” the company added. 

Crypto companies move their listings from London to New York 

Since returning to the White House in January, Donald TRUMP has appointed crypto-friendly regulators, dismissed lawsuits against major companies in the sector, and passed landmark legislation overseeing stablecoins. 

By contrast, Britain has been accused by crypto executives of dragging its feet on regulation, leaving it lagging behind the US and other rival financial centres.

Last month, former Conservative chancellor George Osborne launched a withering attack on the Labour government’s approach to crypto. He warned that Britain risked becoming irrelevant in a revolution reminiscent of Nigel Lawson’s Big Bang in the 1980s. 

Osborne, who now sits on the global advisory council of US crypto exchange Coinbase, said Reeves and Bank of England governor Andrew Bailey were leaving Britain in the slow lane.

The joint task force comes as the UK tries to get its capital markets back on track after a long period of decline. As a result, many companies have moved their listings from London to New York in search of better valuations. Therefore, this initiative is expected to revive the country.

The UK Cryptoasset Business Council, a trade group, said the task force’s announcement marked a clear vote of confidence from the US in the UK economy. “Get this right and it has the potential to turbocharge the City of London and the transatlantic economy,” it added.

Sign up to Bybit and start trading with $30,050 in welcome gifts