US And UK Move Toward Joint Crypto Regulatory Framework

The United States and United Kingdom are taking steps toward closer cooperation on digital asset regulation, a move that could align rules across two of the world's largest financial markets and make cross-border crypto activity smoother for businesses and investors.

According to the Financial Times, U.S. Treasury Secretary Scott Bessent met with U.K. Chancellor of the Exchequer Rachel Reeves in London last week to discuss coordinating rules for stablecoins, custody requirements, and anti-money-laundering (AML) standards. The talks also explored the possibility of creating a shared "regulatory sandbox," which would allow crypto firms to test new products under joint oversight before seeking full market approval.

The Financial Times reported that the discussions follow months of industry pressure from major players including Coinbase, Circle, and Ripple, who have lobbied for transatlantic regulatory harmony to avoid conflicting compliance burdens. "The objective is to create a clear, interoperable framework that facilitates innovation while ensuring strong consumer protection," one person familiar with the talks told FT.

As reported by Reuters, both governments are responding to growing institutional demand for regulated crypto markets. U.S. officials see the effort as a way to keep dollar-denominated stablecoins competitive globally, while U.K. regulators want to make London a hub for digital asset finance post-Brexit. Reuters noted that a formal announcement could come as early as next quarter, outlining shared principles for stablecoin reserves, disclosure standards, and cross-border supervision.

If successful, this cooperation could reduce the regulatory patchwork that currently forces crypto firms to comply with separate, sometimes conflicting, rules when serving U.S. and U.K. customers. Analysts told Reuters that harmonization would also reduce the risk of "regulatory arbitrage," where companies relocate to jurisdictions with the lightest rules, potentially undermining investor protection.

Challenges remain. Data-sharing agreements must respect strict privacy rules on both sides of the Atlantic, and agencies such as the U.S. SEC and U.K. Financial Conduct Authority (FCA) still have differing approaches to token classification. Political changes — including the U.S. 2026 midterms — could also delay or complicate implementation.

Still, market participants are encouraged. "The alignment of two major financial jurisdictions would be a game-changer for global crypto adoption," said a London-based digital assets attorney quoted by FT. If a joint framework emerges, it could set a template for similar agreements with the EU or Asia, further accelerating crypto's integration into the global financial system.