US, UK Regulators Partner on Broader Crypto Regulation

Regulators in the U.S. and U.K. have met to discuss broader crypto regulatory initiatives. They reaffirmed their commitment to “continued cooperation to support safe financial innovation, as well as to strengthen regulatory outcomes for stablecoins across jurisdictions.”

US and UK Regulators Collaborate on Crypto Regulation

The U.S. Department of the Treasury published a joint statement last week on the U.K.-U.S. Financial Regulatory Working Group.

The group held a meeting on July 21. Participants included officials and senior staff from HM Treasury, the Bank of England, the Financial Conduct Authority, the U.S. Treasury Department, the Federal Reserve Board, the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC).

The statement explains that the financial regulatory working group was formed in 2008 “to deepen bilateral regulatory cooperation with a view to the further promotion of financial stability; investor protection; fair, orderly, and efficient markets; and capital formation in both jurisdictions.”

On the topic of financial innovation, the regulators reflected on the outcomes of the U.S.-U.K. Financial Innovation Partnership meeting in June. They exchanged views on “crypto-asset regulation and recent market developments, including those in relation to stablecoins, and the exploration of central bank digital currencies (CBDCs),” the Treasury detailed, elaborating:

All participants committed to continued cooperation to support safe financial innovation, as well as to strengthen regulatory outcomes for stablecoins across jurisdictions.

“Participants also considered future opportunities for further discussion on broader crypto-asset regulatory initiatives,” the Treasury added.

The regulators from both the U.S. and the U.K. “recognized the continued importance of the ongoing partnership on global financial innovation and acknowledged the importance of both maintaining and further engaging in multilateral discussions on these topics,” the statement concludes.

The U.K. Financial Conduct Authority’s chief executive, Nikhil Rathi, said in July: “The U.S. and U.K. will deepen ties on crypto-asset regulation and market developments — including in relation to stablecoins and the exploration of central bank digital currencies.”

The British government outlined its legislative agenda, including “the safe adoption of cryptocurrencies,” in the Queen’s Speech in May. It also has a plan to make the country a global crypto hub and “a hospitable place for crypto,” including establishing a dynamic regulatory framework for crypto, regulating stablecoins, and working with the Royal Mint to create a non-fungible token (NFT). Last week, the country’s Law Commission, a statutory independent body, published proposals to reform laws relating to digital assets.