Transatlantic Taskforce Signals a New Era of UK-US Crypto Regulatory Cooperation

The United Kingdom and United States are embarking on a new collaboration that could have lasting implications for both capital markets and digital assets. The Transatlantic Taskforce for Markets of the Future, announced during President Donald Trump’s recent state visit to the UK, is designed to strengthen cooperation across financial markets, with a particular focus on the regulation of digital assets, including stablecoin.

Announced by UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, the task force reflects a shared commitment not only to closer alignment on cryptoasset policy, but also easing the regulatory burdens that firms face when raising capital across borders.

DIGITAL ASSETS IN FOCUS

Digital assets are a central part of the task force’s agenda, as both countries move forward with their own regulatory frameworks.

In the United Kingdom, HM Treasury and the Financial Conduct Authority (FCA) are expanding the existing financial services framework to bring certain cryptoassets within scope. Near-final draft legislation, expected to be enacted by the end of this year and take effect in 2026, would make the issuance of fiat-backed stablecoins a regulated activity. The detailed requirements for issuers are still under consultation. Importantly, the UK is not creating a standalone regime; instead, it is adding new regulated activities and cryptoassets to the existing framework.

In the United States, legislation in the US Congress is laying the foundation for a federal regulatory framework. The GENIUS Act passed earlier this year established a basis for stablecoin issuance and oversight. The proposed Digital Asset Market Clarity Act of 2025 (CLARITY Act) seeks to define a framework for a digital asset market structure and assign the respective roles of the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Together, these measures could form the backbone of a more comprehensive federal regime.

The task force is designed to serve as a bridge across these approaches, fostering dialogue on licensing, custody, disclosures, interoperability, and cross-border compliance. While it will not set rules, it could help shape the direction of both regimes and reduce the risk of fragmented requirements across two of the world’s largest capital markets.

A 180-DAY ROADMAP

The task force has been asked to deliver recommendations within 180 days—a demanding timeline given the breadth of issues under review. Its remit extends beyond digital assets to the wider capital markets, with a mandate to explore near-term cooperation on cryptoassets, reduce friction for firms raising capital across borders, and ensure that proposals are commercially viable and innovation-friendly.

It will be jointly chaired by HM Treasury and the US Treasury, with participation expected from the FCA, SEC, CFTC, and other relevant agencies, and will operate through the existing UK–US Financial Regulatory Working Group. While the task force itself is newly established, it builds on previous UK–US regulatory dialogues under the working group, with the task force marking a more targeted approach to cooperation on digital assets and capital markets.

For firms, the six-month timeline means early signals on regulatory alignment could emerge by early 2026, offering a narrow but critical window for stakeholder engagement.

WHY IT MATTERS

For cryptoasset firms, the task force could bring much-needed clarity in areas such as custody, exchange licensing, stablecoin issuance standards, decentralized finance (DeFi) risk frameworks, and the treatment of tokenised instruments. While UK and US rules are unlikely to be identical, the initiative raises the prospect of greater mutual recognition or interoperability in practice, paving the way for less burdensome cross-border compliance and more consistent expectations around disclosures, governance, and operational resilience.

More broadly, the task force signals a political commitment to deepening cooperation on financial services at a time when cross-border access to capital remains critical. Reducing duplicative requirements for firms raising funds across both markets could ease costs, improve efficiency, and encourage innovation.

LOOKING AHEAD

While details are still emerging, the initiative could prove pivotal over the coming years. If successful, it may shape how regulators approach not only digital assets but also capital markets more generally.

Firms active across the United Kingdom and United States should pay particular attention to

• evolving rules on stablecoin issuance and adoption;
• regulatory treatment of custody and exchange platforms;
• frameworks for addressing DeFi and operational resilience risks; and
• recognition of tokenised financial instruments.

The task force is expected to deliver its first report within six months. That timetable is ambitious, but it also means that concrete proposals may come into focus quickly. For market participants, the practical takeaway is clear: this is not just another long-term policy initiative. The task force could begin influencing how capital raising and crypto regulation are handled across two of the world’s largest capital markets sooner than expected.