The US and UK on Tuesday outlined a shared vision for stablecoin regulation, pledging closer cooperation to support their use in cross-border payments and capital markets.
They also discussed promoting innovation, financial stability and consumer protection.
In a joint statement released by the Transatlantic Future Markets Working Group, both governments expressed their intention to align their evolving stablecoin regulatory regimes where appropriate, providing businesses with greater clarity and confidence to expand digital financial services in both markets.
The statement stated that both countries view stablecoins as an important driver of innovation in digital money and will support their secure use in cross-border payments, settlements, and tokenized financial markets. The parties also supported the coexistence of various forms of digital money, including regulated stablecoins and tokenized bank deposits. The US and UK committed to establishing clear, consistent, and risk-based regulatory and supervisory frameworks, avoiding rules that unnecessarily fragment markets or hinder cross-border competition. They also emphasized that reserve requirements and prudential standards should be proportionate to risks and not create excessive barriers to entry.
Both governments reaffirmed that stablecoins, positioned as money, should be fully backed by high-quality liquid assets at a ratio of at least one to one. The parties also committed to strict standards for reserve segregation, asset custody, and timely redemption, as well as to providing clear legal guarantees for stablecoin holders in the event of issuer insolvency. Looking ahead, the US and UK have stated their intention to explore formal mechanisms that could allow stablecoins issued in one jurisdiction to access the other's market—subject to each party's laws and regulatory processes—as part of a broader effort to strengthen transatlantic integration in digital finance.