US and UK Strengthen Ties on Stablecoin and Tokenization Rules

The United States and United Kingdom have reaffirmed plans to work more closely on digital asset regulation, pointing to progress on stablecoin oversight and tokenized markets during a recent government meeting.

Inside the Latest US-UK Regulatory Meeting

Regulators from both countries met in London on July 8 for the 13th session of the UK-US Financial Regulatory Working Group. The discussion covered several major topics, including stablecoin oversight, the structure of digital asset markets in the US, tokenization efforts, and the UK’s Wholesale Financial Markets Digital Strategy. A joint statement released on Aug. 4 confirmed that US officials briefed their UK counterparts on how the GENIUS Act, the country’s major stablecoin law, is being rolled out. Talks also touched on modernizing payment systems and improving international money transfers through the G20’s cross-border payments initiative.

No New Rules, But a Clear Signal of Cooperation

While the meeting didn’t result in fresh regulations, both sides made clear they intend to keep coordinating policy across the digital asset space. The joint statement leaned toward encouraging responsible innovation while keeping financial stability and global regulatory alignment as top priorities.

Why the UK Is Reassessing Its Stablecoin Approach

Some industry voices believe the UK is falling behind the US, where the GENIUS Act has fueled rapid growth in regulated, dollar-backed stablecoins. In response, the Bank of England appears to be taking a more flexible approach. Reports from earlier this year noted the central bank is reconsidering strict limits on stablecoin holdings and reviewing a rule that would require 40% of reserve assets to sit in non-interest-bearing accounts at the Bank of England, a requirement some say is overly cautious.

Separately, the UK’s Financial Conduct Authority has pointed to cross border payments as one of the strongest early use cases for stablecoin technology, reflecting growing acceptance of digital assets within traditional financial regulation.