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UK, US stablecoin talks deepen after GENIUS Act passage
US and UK regulators expanded stablecoin talks after the GENIUS Act. A July 8 meeting covered tokenization and cross-border rules. The Bank of England softened reserve requirements in June.
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US and UK financial regulators have expanded talks on stablecoins, tokenization and digital asset oversight as Washington begins implementing the GENIUS Act.
Senior officials from HM Treasury and the US Treasury met in London for the 13th UK-US Financial Regulatory Working Group meeting, according to an Aug. 4 joint statement. Representatives from the Bank of England, Financial Conduct Authority, Federal Reserve, Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency also attended.
Digital finance formed a central part of the July 8 meeting. US officials updated their UK counterparts on the implementation of the GENIUS Act, which establishes a federal framework for payment stablecoins, and on continuing work to define the country's broader digital asset market structure.
Officials also discussed tokenization, payment modernization and the G20 Cross-border Payments Roadmap. UK representatives provided an update on the country's Wholesale Financial Markets Digital Strategy and the appointment of Christopher Woolard as Wholesale Digital Markets Champion.
The meeting did not produce new regulations or binding agreements. Both sides reaffirmed support for the "responsible use and growth of digital assets" alongside consumer protection and financial stability, according to the official working group statement.
The talks come as the United States moves from stablecoin legislation toward implementation, giving issuers and financial institutions a clearer route to operate under federal rules. The UK is still completing its own framework. The FCA is expected to oversee the issuance, custody and trading of qualifying UK stablecoins, while the Bank of England will jointly regulate stablecoins considered systemically important.
Coordination could become important for US stablecoin issuers seeking access to UK payment and capital markets. Differences in reserve requirements, custody rules and insolvency protections could otherwise force issuers to maintain separate structures in each country.
The two governments addressed that risk in a separate July 14 statement from the Transatlantic Taskforce for Markets of the Future. They said their goal was to promote convergence where appropriate without replacing either country's domestic regulatory process.