Odaily Planet Daily report: On August 4, the U.S. Department of the Treasury issued a joint statement outlining the discussions from the U.S.-U.K. Financial Regulatory Working Group meeting held in London on July 8. The regulatory agencies of both sides agreed to enhance collaboration in areas including digital assets, stablecoins, payment modernization, AI, financial stability, capital markets, and cross-border financial cooperation. Participants included finance ministries from both countries, the Bank of England, the Federal Reserve, the U.K. Financial Conduct Authority, and multiple U.S. financial regulatory agencies. The U.S. side presented updates on the implementation of the GENIUS Act and the structure of the digital asset market, while the U.K. side outlined its digital strategy for wholesale financial markets. Both sides endorsed comparable regulatory standards for stablecoins, including consistent treatment of cross-border usage, equivalent risk management, and the requirement that stablecoins used as money be backed by a reserve of high-quality, liquid assets at a minimum 1:1 ratio. The U.S. Federal Deposit Insurance Corporation has proposed implementation standards under the GENIUS Act covering reserves, redemptions, capital, liquidity, risk management, custody, and safeguarding. The Bank of England has published a draft set of rules for stablecoins that could reach systemic scale within the U.K. economy, including a temporary issuance cap of £40 billion per systemic stablecoin, unrestricted use by individuals and businesses, and reserve requirements. The Financial Regulatory Working Group is expected to reconvene in early 2027.
US and UK Expand Digital Asset Regulatory Cooperation, Plan Comparable Stablecoin Standards
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Summary
The U.S. Treasury and U.K. regulators have strengthened cooperation on digital asset regulation, including stablecoin oversight. A joint statement from their July 8 meeting in London, released on August 4, 2026, outlined plans for aligned stablecoin rules. The U.S. highlighted the GENIUS Act, while the U.K. unveiled its wholesale digital strategy. Both support 1:1 reserve backing for stablecoins used in monetary transactions. The Bank of England proposed a £40 billion cap on systemic stablecoin issuance. The working group will reconvene in early 2027.
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