The United States and the United Kingdom reaffirmed their commitment to closer financial regulatory cooperation during a recent bilateral working group, signaling continued policy alignment on digital assets as US authorities move to implement landmark stablecoin legislation.
During the 13th meeting of the UK-US Financial Regulatory Working Group (FRWG), held in London on July 8, officials discussed stablecoin regulation, digital asset market structure in the United States, tokenization and the UK’s Wholesale Financial Markets Digital Strategy.
An Aug. 4 joint statement summarizing the meeting said US officials updated their UK counterparts on implementation of the $GENIUS Act, the country’s landmark stablecoin law, as well as ongoing work on digital asset market structure. Participants also discussed payment modernization and the G20 Cross-border Payments Roadmap, an international initiative to improve cross-border payments.
Although the meeting did not produce new policy measures, it underscored a shared commitment to coordinating regulation across key areas of the digital asset industry. The statement struck a broadly supportive tone toward “responsible” digital asset innovation while emphasizing financial stability and international regulatory cooperation.
That commitment was also reflected on July 14, when the Transatlantic Taskforce for Markets of the Future — a joint US-UK initiative focused on strengthening cooperation on financial innovation and capital markets — published its initial recommendations alongside a joint statement on stablecoins. The governments said the measures would lay the foundation for continued US-UK leadership in digital assets and capital markets.
UK rethinks stablecoin rules as US moves ahead
The UK’s renewed emphasis on stablecoins comes as some industry observers argue the country is losing ground to the United States, where the $GENIUS Act has accelerated momentum behind regulated dollar-backed stablecoins.
The Bank of England has also softened its stance on stablecoin regulation. As Cointelegraph reported in May, the BoE is considering alternatives to temporary limits on stablecoin holdings and is reviewing whether its proposal requiring at least 40% of reserve assets to be held as non-interest-bearing deposits at the central bank is too restrictive.
Separately, the UK’s Financial Conduct Authority said earlier this year that cross-border payments represent one of the clearest near-term use cases for stablecoins, underscoring growing regulatory recognition of the technology’s potential.
