The UK and the US will establish a joint task force to develop a framework for cryptographic regulation

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The UK and the US launched a joint digital assets task force on September 22nd.

The Task Force will report to both Treasury ministries within 180 days through the UK and US Financial Regulation Working Working Groups with recommendations on digital asset cooperation.

Officials from the HM Treasury and the US Treasury will chair initiatives that include representatives from the national capital markets and digital asset regulators.

Treasury Secretary Scott Bescent met Prime Minister Rachel Reeves on Downing Street last week to officially turn the effort into it. The announcement confirms Financial Times’ report on potential transatlantic cryptography collaborations starting September 16th.

The announcement of the cooperation comes a week after the Bank of England proposed a maximum amount of stable amounts allowed by the bank to hold, pushing the threshold discussed in November 2023.

Areas of Interest

The collaboration covers short-term to mid-term digital asset coordination, long-term collaboration opportunities, and innovation in the wholesale digital market while regulatory frameworks are being developed.

The task force also explores ways to improve capital market links between the two countries, focusing on reducing the compliance burden for US companies raising capital across the UK and across the border.

Industry experts provide input to ensure that recommendations address sector priorities. The partnership is committed to technological transformation in the market based on historic financial relationships between London and New York.

Both Treasury Departments acknowledged the need for a coordinated approach as the Digital Assets Act develops across jurisdictions.

First bilateral cooperation

The task force represents the first formal bilateral cryptocurrency cooperation between the two largest financial centres in the world.

The collaboration aims to “remove opportunities for investors, businesses and market participants on both sides of the Atlantic,” according to a statement from the Treasury, while maintaining regulatory oversight of digital asset activities.

The initiative addresses market participants’ concerns about fragmented regulatory approaches complicating cross-border digital asset management.

The 180-day timeline positions both governments to provide specific regulatory recommendations by mid-2026, when several major digital asset regulatory frameworks are expected to take effect globally.