US and UK to align regulations on tokenization and stablecoins
The two countries strengthen transatlantic cooperation in digital asset regulations.
1Transatlantic Cooperation
The US and UK Treasuries issued joint recommendations under the Transatlantic Taskforce for the Markets of the Future to align digital asset regulations. This is part of efforts to enhance financial regulatory cooperation between the two nations.
2Tokenization Recommendations
The task force suggested a private-sector-led group to test cross-border tokenized asset use cases. It also recommended that US financial agencies and the Bank of England identify shared approaches to regulating tokenized assets.
3Stablecoin Regulations
The two countries aim to achieve regulatory alignment on stablecoins and establish a dynamic cross-border stablecoin market. The regulations seek to maintain financial stability while preventing market distortions.
4Asset-Backing Requirement
The recommendations state that stablecoins should be backed 1:1 by high-quality, liquid assets. This aligns with the upcoming GENIUS Act in the US.
5Economic Impact Potential
A report suggests tokenization could add $44 billion to the UK's annual economic output by 2035, provided tokenization scales globally and adoption increases.
6Blockchain Testing Plans
The UK plans to issue tokenized bonds by Q1 2027 and test financial transactions on blockchain. These steps will contribute to the maturation of the digital asset ecosystem.