UK and US Officials Discuss Cryptocurrency Regulation Alignment

TLDR

• UK and US officials discussed strengthening coordination on digital assets
• Representatives from major crypto companies and banks attended the talks
• Stablecoins likely to be included in any agreement between the countries
• UK crypto advocacy groups have criticized Britain’s cautious approach to regulation
• 27% of UK adults surveyed are open to including crypto in retirement funds

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The United Kingdom and United States are preparing to strengthen their cooperation on cryptocurrency regulation, as Britain looks to follow the Trump administration’s more crypto-friendly approach to boost innovation and investment.

UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent held discussions on Tuesday about how the two nations could enhance their coordination on digital assets, according to a report from the Financial Times. The talks included representatives from major crypto companies Coinbase, Circle Internet Group, and Ripple, alongside executives from traditional financial institutions Bank of America, Barclays, and Citi.

The meeting was reportedly arranged “last-minute” after crypto advocacy groups urged the UK government to adopt a more open stance toward the industry. These groups claimed Britain’s cautious approach has hindered innovation and policy development in the digital asset space.

Cassie Craddock, managing director of UK & Europe at Ripple, expressed optimism about the planned cooperation. “This has the potential to set a template for international cooperation in our industry,” Craddock stated, highlighting the UK’s position as a global financial center with its “dynamic economy, deep capital markets, and extensive talent pool.”

Stablecoins and Market Access

Any agreement between the two countries is likely to include provisions for stablecoins, an area of cryptocurrency that US President Donald Trump has made a policy priority. Industry groups have recently criticized the Bank of England’s proposal to limit individual stablecoin holdings to between £10,000 ($13,650) and £20,000 ($27,300), arguing such restrictions would be difficult and expensive to implement.

The collaboration comes as the UK has experienced slow adoption of cryptocurrencies in its banking sector. A recent survey revealed that approximately 40% of 2,000 crypto investors reported their banks had either blocked or delayed payments to crypto providers, often citing concerns over volatility, fraud, and scams.

Chancellor Reeves reportedly hopes that aligning regulations with the US would provide British companies greater access to American markets and attract more US investment. Sources familiar with the discussions told the Financial Times that the Trump administration’s approach to crypto is seen as “vital to unlocking adoption” in Britain.

Growing Interest Among UK Consumers

Despite institutional caution, public interest in cryptocurrencies appears to be growing in the UK. A study by insurance company Aviva found that 27% of 2,000 adults surveyed were open to including crypto in their retirement funds, with over 40% of those individuals motivated by the potential for higher returns.

The study also revealed that approximately one in five respondents—equivalent to about 11.6 million people—said they currently hold or have previously held cryptocurrency, with about two-thirds of those individuals still owning some form of digital assets.

Work is reportedly already underway between the US and UK to develop digital securities sandboxes. These controlled environments would allow companies using blockchain technology in financial services to test their innovations under regulatory supervision.

Last week, industry groups pressed the British government to include stablecoins and tokenization in the US-UK Tech Bridge. This bilateral initiative aims to strengthen collaboration on advanced technologies, including artificial intelligence, cybersecurity, space, quantum computing, biotechnology, and digital finance.

The groups warned that excluding digital assets from this framework risks leaving Britain behind while other regions move forward in shaping the future of finance. US Securities and Exchange Commission Commissioner Hester Peirce had previously proposed a “cross-border sandbox” that would allow crypto firms to operate under regulatory oversight for a two-year period.

The timing of these discussions coincides with President Trump’s arrival in the UK on Tuesday evening, potentially indicating the high priority both administrations place on digital asset collaboration.

The UK has recently made some progress on crypto regulation, proposing a framework in May that would treat crypto exchanges, dealers, and agents similarly to traditional finance firms, with strong compliance checks focused on transparency and consumer protection.

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