The US and UK issue a joint stablecoin declaration, aiming to promote regulatory convergence and cross-border market access

Wu Says learns that the governments of the UK and the US, through the Transatlantic Future Markets Working Group, have released a joint statement on stablecoins, saying they will work to bring the two countries’ regulatory frameworks closer in appropriate areas and support the use of stablecoins for cross-border payments, settlements, and capital markets.

The two sides believe that stablecoins used as money should be backed at a minimum 1:1 ratio by high-quality liquid assets, that reserve assets must be segregated from the issuer’s own funds, and that holders must be guaranteed timely redemption. If an issuer enters bankruptcy, restructuring, or disposal proceedings, holders should have clear, protected legal claims to the reserve assets, with priority over other creditors.

The two countries plan to achieve comparable regulatory outcomes for similar risks and activities, avoid setting reserve and prudent requirements that are disproportionate to risk, weaken commercial viability, or hinder competition, and, with appropriate safeguards, support regulated stablecoin access to banks and other financial services for settlement in the securities and commodities markets. Both sides also plan to explore clear pathways for stablecoins issued in each country to enter the other’s market.