The UK and the US launched a joint regulatory task force for digital assets on 22 September, called the Transatlantic Task Force for Markets of the Future.
The Task Force will report within 180 days to both financial ministries via the UK-US Financial Regulatory Working Group with recommendations on the cooperation between digital assets.
Civil servants of HM Treasury and US Treasury will be chairman of the initiative, including representatives of both the capital markets of both nations and digital assets regulators.
Treasury Secretary Scott Bessent met Chancellor Rachel Reeves in Downing Street last week to formalize the effort. The announcement confirms reports from the Financial Times from September 16 on a potential transatlantic crypto cooperation.
The partnership announcement takes place a week after the Bank of England Caps had proposed on the Stablecoin amounts that banks may hold, with thresholds discussed in November 2023.
Areas of interest
The cooperation focuses on three core areas: short-to-medium term digital asset coordination, while developing frameworks, long-term cooperation opportunities and innovation of digital markets.
The Task Force will also investigate methods to improve the couplings of the capital market between the two countries, aimed at reducing compliance with British and American companies that attract cross -border capital.
Industry experts will offer input to ensure recommendations of the sector. The partnership builds on the historical financial relationship between London and New York as global financial hubs and at the same time tackling the technological transformation in markets.
Both Treasury departments recognized the need for coordinated approaches as digital assets legislation develops between areas of law.
First bilateral collaboration
The Task Force represents the first formal bilateral crypto -regulating cooperation between the two largest financial centers in the world.
According to the announcement of the Treasury, the collaboration has focused on “Opterders, companies and market participants on both sides of the Atlantic Ocean Unlock”, while maintaining regulatory supervision of digital assets activities.
The initiative focuses on the concern of the market participants on fragmented regulatory approaches that make cross-border digital assets activities more complicated.
The 180-day timeline positions both governments to provide specific legal recommendations before mid-2026, when it is expected that various important digital asset-controlling frameworks come into effect worldwide.