Top Regulators Forge US-UK Alliance to Oversee Digital Assets

CN
8 hours ago

The U.S. Department of the Treasury issued a Joint Statement on the U.S.-U.K. Financial Regulatory Working Group on June 24, marking a significant alliance to strengthen oversight of digital assets and reshape financial markets as transatlantic cooperation expands.

Officials gathered in London on June 3 for the 11th meeting. The session involved HM Treasury, the U.S. Department of the Treasury, the Bank of England, the Financial Conduct Authority, the Federal Reserve Board, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the U.S. Securities and Exchange Commission. While economic conditions were reviewed, digital finance and innovation were central topics. Discussions revealed a unified effort to align oversight as both governments move forward with legislation on stablecoins and digital securities. The announcement details:

Representatives discussed respective priorities for digital assets and provided updates on the progress of legislation in both jurisdictions, including legislation to regulate stablecoins.

U.K. officials shared updates on the Digital Securities Sandbox, and both sides examined methods to promote cross-border innovation.

Authorities stressed the importance of effective regulation to encourage growth and reduce financial risks, maintaining collaboration through global organizations like the Financial Stability Board and the G20. Initiatives to improve cross-border payments and upgrade payment systems were also key points.

Artificial intelligence drew considerable attention, as regulators evaluated its current applications and future implications within financial services, developing frameworks to balance innovation with safety. On capital markets, U.K. authorities outlined plans for a T+1 settlement cycle by October 2027 and changes to U.K. Listing Rules, while U.S. regulators reflected on their May 2024 transition. “The Working Group agreed to reconvene by early 2026, while noting the importance of continued open dialogue on shared priorities.”

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