U.S. and U.K. regulators join forces for broader regulation of crypto-currencies

Regulators from the United States and the United Kingdom have met to discuss broader regulatory initiatives regarding crypto-currencies. They reaffirmed their commitment to “continue to cooperate to support safe financial innovation, as well as to strengthen regulatory outcomes for stablecoins in all jurisdictions.“

US and UK regulators collaborate on crypto-currency regulation.

The U.S. Treasury Department issued a joint statement last week on the U.K.-U.S. Financial Regulation Working Group.

The group held a meeting on July 21. Participants included officials and senior managers from the U.K. 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 Regulation Task Force was formed in 2008 “to deepen bilateral regulatory cooperation to further promote financial stability, investor protection, fair, orderly and efficient markets, and capital formation in both jurisdictions“.

On the topic of financial innovation, 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 related to stablecoins, and the exploration of central bank digital currencies (CBDCs)“, detailed the Treasury:

All participants pledged to continue to cooperate to support safe financial innovation, as well as to strengthen the regulatory outcomes of stable currencies in all jurisdictions.

“Participants also considered future opportunities to continue discussions on broader regulatory initiatives for crypto-assets“, the Treasury added.

U.S. and U.K. Regulators “Recognized the continued importance of the ongoing partnership on global financial innovation and acknowledged the importance of maintaining and continuing multilateral discussions on these topics“, the statement concluded.

The chief executive of the U.K.’s Financial Conduct Authority, Nikhil Rathi, said in July, “The U.S. and the U.K. will deepen their ties on crypto asset regulation and market development – particularly with respect to stablecoins and the exploration of central bank digital currencies.“

The British government has presented its legislative program, including “The safe adoption of crypto-currencies.” in the Queen’s Speech in May. He 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 an NFT. Last week, the country’s Law Commission, an independent statutory body, published proposals for reforming digital asset laws.