UK and US align stablecoin rules for cross-border market access

The United Kingdom and United States have agreed to pursue closer coordination on stablecoin regulation, cross-border payments and tokenized financial markets.

Summary

• UK and US regulators seek aligned stablecoin rules while preserving competition and cross-border market access.
• Stablecoins used as money should hold one-to-one reserves and protect holders during issuer insolvency proceedings.
• Officials will explore pathways allowing regulated stablecoins from either jurisdiction to enter the other market.

The two governments also plan to explore how regulated stablecoins issued in one country could gain access to the other market.

The commitments appear in a joint UK-US statement on stablecoins released on July 14. The statement forms part of recommendations from the Transatlantic Taskforce for Markets of the Future, which the two governments established in September 2025.

UK and US set common stablecoin principles

The two governments said stablecoins can support payments, settlement and capital market transactions when regulators apply proper safeguards. They plan to seek “comparable outcomes for comparable risks and activities” while allowing each country to develop requirements under its own legal framework.

The approach does not require identical regulations. Instead, officials want to reduce unnecessary differences that could block cross-border activity. The governments also said they would avoid rules that impose costs out of proportion to the risks or create unnecessary barriers for new competitors.

As reported by crypto.news, the agreement comes as stablecoin rules remain a major policy issue in Washington. U.S. lawmakers and banking groups continue to debate how digital dollar products should interact with traditional banks and financial markets.

Stablecoins should maintain at least 1:1 backing

The joint statement says stablecoins presented as money should hold at least one dollar or equivalent in high-quality liquid assets for every unit issued. Each country will decide which reserve assets qualify under its domestic framework.

Issuers should also separate reserve assets from their own corporate funds. The governments said holders should receive timely redemptions and clear information about their legal rights. In an issuer failure, holders should have a protected claim on reserves, including priority over other creditors where domestic law allows it.

The principles broadly match the direction of U.S. stablecoin regulation under the GENIUS Act. The Treasury began proposing implementation rules in 2026 as the United States prepares its federal framework for payment stablecoin issuers.

Governments explore cross-border stablecoin access

The UK and US plan to examine a clear pathway that could allow stablecoins regulated in either jurisdiction to reach customers and markets in the other. Any access arrangement would remain subject to each country’s laws and regulatory processes.

Both governments also support fair, risk-based access to banks and other financial services for lawful regulated digital asset companies. They said stablecoins could serve as settlement instruments in securities and commodities markets when firms meet the required safeguards.

The statement does not create automatic mutual recognition or approve any specific stablecoin for cross-border distribution. Regulators still need to develop the legal routes and standards required to put the plan into practice.

Tokenized finance forms part of wider cooperation

The agreement extends beyond stablecoins. Under the broader Transatlantic Taskforce recommendations, the two countries plan to work with a private-sector group to test cross-border uses for tokenized assets over a one-year period.

The SEC, CFTC, FCA and Bank of England will also seek common approaches to areas including tokenized securities settlement and the possible use of stablecoins or tokenized money market funds as collateral at clearing houses.

The recommendations leave both countries free to complete their own regulatory processes. Their stated aim is to reduce cross-border friction while giving regulated stablecoins and tokenized financial products clearer routes between two major global financial markets.