Senior officials from the US Treasury and HM Treasury, alongside representatives from the Federal Reserve, SEC, and the Bank of England, convened on July 8 to address the evolving landscape of digital finance. While the discussions produced no binding agreements, the sessions marked a significant effort to align standards for stablecoin backing, custody, and insolvency protections. Both nations emphasized that stablecoins functioning as money must maintain one-to-one backing with high-quality liquid assets to ensure financial stability.
In section Cryptocurrency
US and UK Align Stablecoin Standards Amid Regulatory Shift
Financial regulators from Washington and London have intensified collaboration on digital asset oversight, signaling a push for policy convergence as the United States transitions toward implementing the GENIUS Act. The 13th UK-US Financial Regulatory Working Group meeting in London focused on harmonizing stablecoin frameworks and cross-border market access.
Evolving Regulatory Frameworks
The Bank of England has recently adjusted its approach to systemic stablecoins, replacing rigid individual holding limits with a £40 billion issuance cap. This shift, combined with a reduction in required non-interest-bearing deposits from 40% to 30%, reflects a broader goal to keep stablecoin businesses commercially viable while maintaining consumer safeguards. Meanwhile, the US continues to build out its federal framework under the GENIUS Act, leaving issuers to navigate separate, though increasingly similar, regulatory requirements in both jurisdictions. The two governments now aim to explore pathways for mutual recognition, with the next formal meeting of the working group scheduled for early 2027.
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