In a move aimed at revitalizing its digital asset sector, the United Kingdom is exploring a deeper partnership with the United States. According to a report from the Financial Times, UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent engaged in discussions to enhance collaboration on cryptocurrency regulations and policies.
The meeting on Tuesday included representatives from leading crypto firms such as Coinbase, Circle Internet Group, and Ripple, alongside top executives from major financial institutions like Bank of America, Barclays, and Citi. This diverse assembly underscores the importance being placed on shaping a more innovative regulatory environment for digital currencies.
The discussions come on the heels of pressure from crypto advocacy groups convincing the UK government to adopt a more liberal approach toward the cryptocurrency industry. Observers have indicated that the UK has been falling behind other markets, notably the US, in fostering a conducive atmosphere for crypto innovation and investment.
One of the focal points of the proposed agreement is the regulation of stablecoins—digital currencies pegged to stable assets. The Financial Times noted that the Trump administration previously prioritized stablecoins, an area where they also had substantial business interests. Advocates believe that a clear framework governing stablecoins could facilitate the wider adoption of digital assets.
However, some recent proposals by the Bank of England have drawn criticism from industry proponents. The central bank suggested limiting individual stablecoin holdings to between £10,000 ($13,650) and £20,000 ($27,300). Critics argue that such restrictions would be cumbersome and inefficient for users and providers alike.
Surveys indicate that UK banks have exhibited caution regarding crypto transactions, with approximately 40% of 2,000 respondents reporting their banks had restricted or delayed payments to crypto service providers. These actions are largely motivated by concerns about market volatility, fraud risks, and other security issues.
Despite these challenges, there are signs of progress in the UK’s approach to crypto regulation. Earlier this year, a framework was proposed that would align the treatment of crypto exchanges, dealers, and agents with that of traditional financial institutions. Enhanced compliance measures are expected to emphasize transparency and consumer protection in the evolving landscape of digital assets.
Chancellor Reeves has expressed optimism that aligning UK cryptocurrency regulations more closely with those in the US could provide British companies improved access to American markets. This, in turn, could attract significant investments from across the Atlantic.
A knowledgeable source described the potential for the UK’s digital assets market as considerable, suggesting that the adoption route laid out during the Trump administration was pivotal for unlocking opportunities within the sector. Plans are already underway to create digital securities sandboxes in collaboration with US officials. These innovation hubs will allow firms to experiment with blockchain technology in a regulated environment.
Public sentiment towards cryptocurrency in the UK also appears positive. A recent poll commissioned by Aviva revealed that 27% of surveyed adults expressed openness to including crypto in their retirement portfolios, drawn by the appeal of higher potential returns. The survey highlighted that approximately one in five participants—roughly 11.6 million individuals—have owned cryptocurrencies at some point, illustrating a growing acceptance of digital assets among British consumers.
As the UK actively seeks to reshape its relationship with the cryptocurrency space, the outcomes of these ongoing discussions with the US could play a significant role in defining the future landscape of digital assets in the country.
