The collaboration between U.S. and U.K. regulators in overseeing digital assets, stablecoins, AI in finance, and cross-border innovation is rapidly advancing, reshaping the global financial landscape and reinforcing stability.
U.S.-U.K. Partnership Strengthens Oversight in Financial Markets
The recent Joint Statement by the U.S. Department of the Treasury on the U.S.-U.K. Financial Regulatory Working Group signifies a pivotal moment in transatlantic cooperation to enhance supervision of digital assets and revamp financial markets.
The 11th meeting held in London on June 3 saw participation from key entities such as HM Treasury, the Bank of England, and various U.S. regulatory bodies. Discussions centered on digital finance and innovation, with a unified approach towards regulatory alignment evident as both nations progress with legislation concerning stablecoins and digital securities.
Noteworthy highlights include discussions on legislative priorities for digital assets and updates on stablecoin regulation in both jurisdictions.
The U.K. shared insights on the Digital Securities Sandbox, with a focus on fostering cross-border innovation. Emphasis was placed on the need for effective regulation to spur growth, mitigate risks, and enhance collaboration through global platforms like the Financial Stability Board and the G20. Efforts to enhance cross-border payments and modernize payment systems were also prominent.
The role of artificial intelligence in financial services was a key focal point, with regulators evaluating its current applications and future implications. Frameworks were discussed to strike a balance between fostering innovation and ensuring safety. On the capital markets front, U.K. authorities outlined plans for a T+1 settlement cycle by October 2027 and modifications to the U.K. Listing Rules. U.S. regulators also provided insights on their forthcoming transition in May 2024. The Working Group has committed to reconvene by early 2026, underscoring the importance of sustained dialogue on shared priorities.