U.S., U.K. Deepen Coordination on Digital Asset Rules, Move Toward Aligned Stablecoin Standards

Odaily Planet Daily reports that on Aug. 4, the U.S. Department of the Treasury released a joint statement summarizing discussions from the U.S.-U.K. Financial Regulatory Working Group meeting held in London on July 8. Regulators on both sides agreed to step up cooperation across digital assets and stablecoins, payments modernization, AI, financial stability, capital markets, and cross-border financial coordination. Attendees included the two countries' finance ministries, the Bank of England, the Federal Reserve, the U.K. Financial Conduct Authority, and multiple U.S. financial regulatory agencies. The U.S. delegation provided updates on implementation of the GENIUS Act and the evolving structure of the digital asset market. The U.K. side presented its digital strategy for wholesale financial markets. Both parties backed comparable stablecoin regulatory standards, calling for consistent treatment of cross-border use, equivalent risk management, and a requirement that stablecoins used as money be backed by reserves of high-quality liquid assets at a minimum 1:1 ratio. In the U.S., the Federal Deposit Insurance Corporation has proposed GENIUS Act implementation standards covering reserves, redemptions, capital, liquidity, risk management, custody, and safeguarding. In the U.K., the Bank of England has published draft rules for stablecoins that could reach systemic scale, including a temporary issuance cap of £40 billion per systemic stablecoin, unrestricted use by individuals and businesses, and reserve requirements. The Financial Regulatory Working Group is expected to meet again in early 2027.