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The UK is about to increase cooperation with the US on digital belongings whereas exploring a extra crypto-friendly strategy to spice up innovation and entice funding.
That’s in accordance with a Monetary Occasions report that cited sources acquainted with the matter after discussions on Tuesday between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent.
The story stated the initiative seeks to do extra to harmonize regulatory frameworks, notably for stablecoins, and enhance UK corporations’ entry to US monetary markets.
The discussions coincide with President Donald Trump’s present state go to to the UK and included executives from Coinbase, Circle, Ripple, USD Coin issuer Circle Web Group, Financial institution of America, Barclays and Citigroup.
One of many individuals cited within the report stated that there’s at present a “large alternative for the UK” in crypto, and that Trump’s pro-crypto stance is seen as “important” to unlocking digital asset adoption in Britain.
Collectively we’re delivering funding and alternative for each our international locations.
It was a pleasure to welcome @SecScottBessent to Downing Avenue as we speak. pic.twitter.com/rvI435Jz0O
— Rachel Reeves (@RachelReevesMP) September 16, 2025
UK officers are reportedly already working with the US to create digital securities sandboxes, which is able to give corporations working within the monetary sector the flexibility to check blockchain expertise.
UK And US Offers Are Doubtless To Embody Stablecoins
In keeping with the FT report, any crypto-centered offers between the UK and US will probably contain stablecoins. These digital belongings bought a serious enhance from an adoption and regulatory standpoint after US President Trump signed the GENIUS Act into regulation.
Trump can also be concerned in crypto ventures that contain stablecoins. The most important of those endeavors is USD1, a stablecoin launched by the Trump family-backed World Liberty Monetary.
Since its launch in April this yr, USD1’s market cap has risen to over $2.65 billion, rating it because the fifth-biggest stablecoin by way of capitalization, in accordance with CoinMarketCap.
High stablecoins by market cap (Supply: CoinMarketCap)
Along with World Liberty Monetary, the Trump household is concerned in crypto mining, decentralized prediction markets, and even have their very own meme cash known as Official Trump (TRUMP) and Melania (MELANIA). The President additionally signed an government order shortly after taking workplace to ascertain a US Strategic Bitcoin Reserve.
Whereas the Trump Administration and the US have pushed ahead with pro-crypto insurance policies, the Financial institution of England was just lately slammed for making an attempt to restrict stablecoin possession.
In a latest proposal, the central financial institution stated it needs to cap particular person stablecoin holdings to between 10,000 and 20,000 British kilos, which equates to between $13,650 and $27,300. It additionally needed to restrict the quantity of stablecoins companies may maintain.
The business lambasted the financial institution for that proposal, and in addition argued that it could be each tough and costly to implement these proposed restrictions.
UK banks have additionally tried to tame adoption. Round 40% of two,000 just lately surveyed crypto buyers stated that their banks had both blocked or delayed a fee to a crypto supplier.
UK Regulator Considers Waiving Some Guidelines For Crypto Corporations
The pushback the Financial institution of England obtained for its stablecoin possession proposal was adopted with new proposals from the UK’s high monetary regulator, the Monetary Conduct Authority (FCA).
The monetary watchdog revealed a session paper as we speak, which units out the minimal requirements that corporations working within the crypto area should meet as soon as the business is formally introduced beneath its remit. In keeping with the regulator, the foundations are designed to steadiness competitiveness and innovation with protections for customers whereas concurrently making certain market integrity.
Within the session paper, the FCA stated that most of the guidelines are much like ones that apply to establishments within the conventional finance sector.
The monetary regulator can also be looking for feedback on whether or not the UK’s Shopper Obligation, which requires conventional finance corporations to ship good outcomes for his or her shoppers, ought to apply to crypto asset actions and digital asset corporations as effectively.
That comes after His Majesty’s Treasury revealed its draft laws for crypto in April. On this draft, plans to deliver exchanges, brokers and sellers consistent with present rules have been outlined.
These plans sign that the UK is “open for enterprise,” however closed to abuse and fraud, the federal government stated.
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