US and UK set common stablecoin rules, opening a clearer cross-border lane for crypto issuers
- The US and UK issued a joint statement to align stablecoin rules, focusing on reserve backing, redemption rights, insolvency protection, and cross-border use.
- Regulators also urged closer coordination on tokenized assets, including collateral use, settlement finality, and cross-border capital raising.
- The move comes as the US implements the GENIUS Act and the UK refines its own stablecoin framework, signaling more coordinated regulation for digital asset firms.
The United States (US) and the United Kingdom (UK) are making progress on the regulation of stablecoins, marking attempts to facilitate stablecoin issuance and transfers across borders and still achieving consumer protection in the process.
On July 14, the US Treasury and the UK’s HM Treasury made a joint statement regarding stablecoins, together with recommendations laid down by the Transatlantic Taskforce for the Markets of the Future.
According to the two nations, well-regulated stablecoins can help reduce transaction costs, stimulate competition, improve cross-border finances, and provide businesses with more regulatory certainty.
The joint statement says both governments intend to “promote convergence between our respective regimes” where it advances shared interests, giving market participants “greater confidence and clarity” to pursue financial innovation.
The project originated in September 2025, when US Treasury Secretary Scott Bessent and Chancellor Rachel Reeves initiated the taskforce during the trip of President Donald Trump to the UK.
Reeves described the two countries as “the world’s two leading financial centres” and emphasized that broader cooperation could be used to boost capital market development, while still maintaining high market regulations.
The latest report of the taskforce has ten recommendations, of which five concern digital assets and tokenization.
Governments align on reserve standards and customer protections
The joint statement indicates principles similar to those found in the new US legislation concerning stablecoins. Stablecoins used for payments must be fully backed by solid, liquid assets, but each state is allowed to establish its own conditions as to what is allowed as reserve assets.
Additionally, the statement advises that reserve assets be kept apart from those of the issuer’s operating funds giving customers faster access to redeem their stablecoins.
One of the statement’s key recommendations relates to insolvency. The two governments advocated that holders of stablecoins should be granted “a clear and protected legal claim on reserves, including priority ahead of other creditors” if an issuer becomes insolvent or enters resolution.
It has been stated by The Block that the method described will provide stablecoin users with more solid legal safeguards than are currently applicable to other major coins such as USDC and USDT.
This statement also emphasizes that reserve requirements should ensure consumer protection, while avoiding the creation of needless obstacles to competition and fragmentation of cross-border markets, which is in line with the general objective of fostering innovation while avoiding contradictory regulation.
Regulators urged to coordinate on tokenized assets
The recommendations apply not just in regard to stablecoins but also for the entire digital asset industry.
The task force urged the Bank of England, the UK Financial Conduct Authority (FCA), the U.S. Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) to cooperate to develop unified regulatory approaches for tokenized assets.
Areas of concern for the cooperation include whether stablecoins and tokenized money market funds can be used for collateral at clearing houses and how the finality of the settlement should be treated concerning tokenized securities.
Furthermore, the report proposes establishing a private sector-led working group that will work for one year to test the practical use cases of tokenized assets in cross-border transactions.
Other recommendations urge the FCA and SEC to look for ways to simplify the process of cross-border capital raising, in addition to assisting in the review of international banking regulations regarding the exposure to cryptocurrencies in the context of the Basel Committee on Banking Supervision.
US stablecoin rules moves toward implementation as debate continues
The transatlantic news arrives at a time when the US is moving from creating stablecoin laws to implementing their provisions.
The GENIUS Act, passed last year, mandates that stablecoins must be backed 100% by USD or assets of equivalent liquidity, establishes standards for reserve management, requires annual audits of companies with a market cap exceeding $50 billion, and sets requirements for foreign issuers serving US customers.
Federal agencies are now drafting the rules needed to implement the law. On July 14, Federal Reserve Chairman Kevin Warsh said in testimony before the House Financial Services Committee that the Federal Reserve is “racing” to prepare payment stablecoin regulations in time for the GENIUS Act’s July 18 deadline.
Not everyone is in agreement regarding the larger role of stablecoins in the financial system. In its Annual Economic Report published in June, the Bank for International Settlements (BIS) stated that the current stablecoin designs “fall short on foundational properties of money and threaten financial integrity.”
The BIS also warned that greater usage of stablecoins backed by the dollar would lead to “stablecoin dollarization” in emerging economies by increasing reliance on foreign-denominated digital assets.
In the meantime, the UK keeps fine-tuning its own framework. The Bank of England has recently put forward the idea of a £40 billion issuance limit for systemic sterling stablecoin issuers.
According to Deputy Governor Sarah Breeden, the aim of this new proposal is to find the right balance between financial stability and innovation by taking into account input from industry players.
The joint statement does not supersede the legal or regulatory procedure of any country, but it provides a better idea of the progress of policies in this area.
For crypto companies that are trying to decide the place for issuing stablecoins and running tokenized financial services, the USA and the UK give a sign that further regulation will be coordinated rather than competitive. This may lead to lower compliance costs, improve institutional confidence, and support wider cross-border adoption of regulated digital assets.
The smartest crypto minds already read our newsletter. Want in? Join them.
FAQs
Who created the US-UK stablecoin roadmap and when?
The Transatlantic Taskforce for the Markets of the Future produced it, and the US Treasury and HM Treasury published the joint statement and recommendations on July 14, 2026. The taskforce was launched in September 2025 by Chancellor Rachel Reeves and Treasury Secretary Scott Bessent during President Trump's state visit to the UK.
What protection would stablecoin holders get if an issuer fails?
The joint statement says each government aims to create a framework that, in insolvency or resolution, gives holders a clear and protected legal claim on reserves, including priority ahead of other creditors. It also requires reserves to be segregated from the issuer's own funds and safeguarded for holders.
How does this connect to the US GENIUS Act?
The GENIUS Act, which turns one this week, requires stablecoins to be fully backed by dollars or similarly liquid assets, mandates annual audits for issuers with more than $50 billion in market capitalization, and sets rules for foreign issuance. Federal agencies are still drafting the rules to implement it, with Fed Chair Kevin Warsh saying the central bank was racing to meet a July 18 deadline.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Micah Abiodun
Micah Abiodun makes good use of his Environmental Engineering and Management (MSc) at Tallinn University of Technology (TalTech) to polish content and price prediction news at Cryptopolitan. Now on his 7th year in the crypto media space, he covers major cryptos, altcoins, DeFi, stablecoins, macro trends, and emerging tech.
