US briefed UK on GENIUS Act stablecoin rules at July FRWG meeting. BlackRock launched tokenized funds as Wall Street moves ahead of final rules.
The United States and the United Kingdom held their 13th Financial Regulatory Working Group meeting in London on July 8. A joint statement released August 4 confirmed that US officials briefed UK counterparts on the rollout of the GENIUS Act stablecoin framework.
The GENIUS Act, signed into law in July 2025, is the first federal law governing payment stablecoins. It requires 1:1 backing with high-quality liquid assets and segregated reserves. Issuers must also comply with Bank Secrecy Act and anti-money laundering rules. Implementation is still in progress. The Treasury, OCC, FDIC, Federal Reserve, and NCUA have all proposed rules but none have finalized. The statutory one-year deadline passed July 18 without a final rulebook from any agency. Full effectiveness is now targeted for early 2027.
At the London meeting, US authorities updated UK regulators on where the process stands. The UK, in turn, shared progress on its Wholesale Financial Markets Digital Strategy. The Bank of England advanced its systemic stablecoin framework, replacing earlier holding limits with a temporary £40 billion per-issuer issuance cap and adjusting reserve composition rules.
One day before the joint statement dropped, BlackRock unveiled two tokenized money market funds designed to meet GENIUS Act reserve eligibility. The move signals that large asset managers are building for the framework even before final rules are in place.
For regulated issuers like Circle and Paxos, transatlantic consistency matters. It reduces fragmentation risk between two of the world's most important financial centers. The alignment strengthens the case for GENIUS Act compliance as a competitive advantage in cross-border payments and institutional settlement.
Both sides flagged tokenization as a shared priority at the July 8 meeting. The tokenized asset market has seen growth, with funds like Tokenized QQQ driving volume. Stablecoin market cap has hit a record $323 billion. Tokenized real-world assets have grown past $28.9 billion, even amid weaker crypto prices.
The next FRWG meeting is set for early 2027. Both sides will take stock of final GENIUS Act stablecoin rules then. Any progress toward mutual market access for regulated digital dollar instruments will also be on the table.
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