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UK and US move to deepen cooperation on digital assets
The United Kingdom has begun talks with the United States to strengthen coordination on digital assets and foster a more innovation-friendly environment for crypto businesses. UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent held discussions focused on aligning regulatory approaches to encourage investment, unlock adoption of new technology, and create clearer market access for British firms.
Who attended and what was discussed
Officials met with representatives from major crypto firms and traditional banks to shape potential joint measures. Executives from Coinbase, Circle Internet Group and Ripple were reportedly present, alongside leaders from Bank of America, Barclays and Citi. According to sources briefed on the talks, the engagement came after industry groups urged the UK to adopt a more open stance toward crypto, arguing that a cautious approach has hindered innovation and investment.
Stablecoins and market access on the agenda
Stablecoins are expected to be a key part of any bilateral agreement. The topic has been emphasized at policy level in the US, and UK officials see aligned rules as a pathway to wider stablecoin adoption and smoother cross-border activity. The Financial Times noted that stablecoins are a policy priority in Washington and an area where closer transatlantic coordination could accelerate market development.
Regulatory context and industry concerns
The UK has made progress on crypto regulation with a May proposal that would bring crypto exchanges, dealers and agents closer to the compliance standards applied to traditional finance. The framework emphasizes transparency and consumer protection, signaling a tougher oversight regime while creating clearer expectations for market participants.
However, some proposed measures have drawn criticism. Industry groups challenged a Bank of England suggestion to cap individual stablecoin holdings at between £10,000 and £20,000, saying such limits would be costly and difficult to enforce. Separately, banks’ risk-averse behaviors have slowed on-ramps for some users: a recent consumer survey found that about 40% of 2,000 crypto investors reported their banks had blocked or delayed payments to crypto providers, often due to concerns about volatility, fraud or scams.
Sandbox testing and access to US markets
British officials say work is underway to create cross-border digital securities sandboxes where blockchain-based financial services can be trialed under regulatory supervision. Reeves hopes that closer alignment with US rules will improve British firms’ access to US markets and encourage greater American investment into the UK’s crypto sector.
Public sentiment and investor appetite
Public interest in crypto remains notable in the UK. A recent Aviva study found 27% of 2,000 adults would consider allocating crypto to retirement accounts, with over 40% of those respondents citing potential higher returns as motivation. Roughly one in five respondents—equivalent to about 11.6 million people—said they currently hold or have previously held crypto, and around two-thirds of that group continue to own digital assets in some form.
These developments signal a pragmatic push by UK policymakers to balance consumer protection and market integrity with measures designed to attract innovation and international capital into the digital assets sector.
Source: cointelegraph
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