UK and US Set Out Strategy to Align Stablecoin and Tokenization Approach

The UK and US governments have announced a joint plan for closer cooperation on stablecoins, tokenized assets, and capital markets, as both countries develop their respective regulatory digital finance frameworks.

Earlier this week, the Transatlantic Taskforce for Markets of the Future issued 10 recommendations, five of which focus specifically on digital assets. The taskforce was established by UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent during President Donald Trump’s state visit to the UK in September 2025.

Under the proposals, British regulators, including the Bank of England and FCA, and American regulators, including the SEC and CFTC, will seek to establish common approaches to tokenized assets. Areas for consideration include settlement finality for tokenized securities and whether stablecoins or tokenized money-market funds could be used as collateral.

The two governments also plan to engage with a private sector-led group that will test cross-border tokenization use cases and share best practices. A separate joint statement on stablecoins is being developed to encourage further regulatory alignment and continued dialogue.

The recommendations, however, are not binding and do not recommend mutual recognition, meaning firms authorized in one jurisdiction still need to comply with the other’s rules.

The remaining recommendations focus on conventional capital markets, including cross-border capital raising, market transparency, and cooperation between regulatory bodies.