U.S. and U.K. Roll Out Joint Framework for Stablecoin Regulation

The United States and the United Kingdom have introduced a joint framework to deepen coordination on digital-asset oversight, putting regulated stablecoins, tokenized assets and cross-border financial cooperation at the core of their shared agenda. The U.S. Department of the Treasury and HM Treasury issued the joint statement Tuesday via the Transatlantic Taskforce for the Markets of the Future, a group formed last year to reduce regulatory fragmentation and expand financial collaboration between the two countries. Both governments said they intend to leverage their roles as major financial hubs to help shape the next phase of digital-asset markets and to support responsible innovation. Under the framework, regulators are expected to coordinate supervision while tightening standards around custody, reserve protections and legal safeguards for stablecoin holders. The task force also called on the Bank of England, the UK Financial Conduct Authority (FCA), the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) to develop more aligned approaches for tokenized assets. It encouraged the FCA and SEC to explore options that could make cross-border capital raising easier. Stablecoin protections are a central focus. The recommendations emphasize regulated stablecoins, tokenized deposits and related digital financial products as tools that could improve payment efficiency, boost competition and strengthen the broader financial system. Officials said consumer protection must keep pace, backing clearer rules on reserve segregation, custody arrangements and issuer operational safeguards. The statement also addressed insolvency treatment for stablecoin holders. Both governments said they are working toward legal frameworks that would give holders clear claims on reserve assets in bankruptcy, restructuring or resolution. Where national law allows, those claims would receive priority over other creditors. The announcement comes as U.S. attention on stablecoins continues to intensify. The GENIUS Act, enacted last year, set federal standards requiring qualifying stablecoins to be fully backed by U.S. dollars or similarly liquid assets. It also mandates annual audits for issuers with market capitalizations above $50 billion and includes requirements for certain foreign-issued stablecoins. Federal agencies are now drafting the regulations needed to implement the law. Implementation remains a near-term priority. At a House Financial Services Committee hearing Tuesday, Federal Reserve Chair Kevin Warsh was questioned about progress on the rulemaking required under the GENIUS Act and whether agencies are on track to meet the July 18 implementation deadline. The U.S.-U.K. initiative is designed to create a more consistent cross-border framework for digital finance by aligning stablecoin oversight, advancing common standards for tokenized assets and coordinating future rulemaking across both jurisdictions.