The US-UK Transatlantic Working Group releases a digital asset roadmap, promoting stablecoin innovation

PANews July 15, 2024 news, citing The Block: the United States and the United Kingdom are deepening cooperation on digital assets and have issued a joint statement on the Transatlantic Future Markets Working Group, saying that regulated stablecoins have the potential to improve the efficiency and competitiveness of the financial system. The working group was established last year, aiming to deepen cooperation between the two countries and reduce market fragmentation. The joint statement calls on the Bank of England, the UK Financial Conduct Authority (FCA), and the US CFTC and SEC to develop frameworks for how tokenized assets should be handled, and instructs the FCA and SEC to “explore options to promote cross-border financing.” The statement also proposes supporting competition and innovation for assets such as stablecoins and tokenized deposits, emphasizing standards including custody, reserve segregation, and consumer protection, and providing clear priority legal claims for stablecoin holders in the event of bankruptcy.

The statement comes exactly one year after the U.S. GENIUS Act was passed. At a hearing of the House Financial Services Committee, Federal Reserve Chair Kevin Warsh said, “We’re right on time to issue the relevant rules before the July 18 deadline.”