UK and US Launch Transatlantic Taskforce for Crypto Regulation

The UK and US have established a joint regulatory task force to develop a framework for digital assets, dubbed the Transatlantic Taskforce for Markets of the Future. Announced on September 22, the initiative aims to deliver recommendations within 180 days to both nations' finance ministries.

Chaired by officials from HM Treasury and the US Treasury, the task force includes representatives from capital markets and digital asset regulators. Treasury Secretary Scott Bessent and Chancellor Rachel Reeves formalized the collaboration during a meeting at Downing Street last week.

The MOVE follows the Bank of England's recent proposal to cap stablecoin holdings by banks, revisiting thresholds initially discussed in November 2023. The task force will focus on three core areas: short-to-medium-term regulatory coordination, long-term cooperation opportunities, and innovation in wholesale digital markets.

Cross-border capital market efficiency will also be a priority, with efforts to reduce compliance burdens for firms operating in both jurisdictions. Industry experts will provide input to ensure the recommendations align with sector priorities.