The United Kingdom and the United States launched a joint regulatory working group for digital assets on September 22, called the Transatlantic Working Group for the Markets of the Future.
The working group will present itself within 180 days to the two financial ministries through the working group on the financial regulation of the United Kingdom-US with recommendations on the cooperation of digital assets.
Officials of HM Treasury and the US Treasury will preside over the initiative, which includes representatives of the capital markets of the two nations and regulators of digital assets.
The secretary of the Treasury, Scott Bessent, met Chancellor Rachel Reeves at Downing Street last week to formalize the effort. The announcement confirms the reports of the Financial Times from September 16 on a potential collaboration of transatlantic cryptography.
The announcement of cooperation occurs a week after the Bank of England offered ceilings on the amounts of the stable that banks are authorized to hold, by pressing the thresholds discussed in November 2023.
Interest areas
Collaboration targets three main areas: the coordination of digital assets in short-mediation while regulatory executives are developing, long-term cooperation opportunities and wholesale ins digital markets.
The working group will also explore methods aimed at improving capital market links between the two countries, focusing on the reduction of compliance charges for British and American companies that increase cross -border capital.
Industry experts will provide comments to ensure that recommendations address the priorities of the sector. The partnership is based on the historic financial relationship between London and New York as global financial poles while addressing technological transformation on the markets.
The two Treasury departments have recognized the need for coordinated approaches as legislation on digital assets develops through the courts.
First bilateral cooperation
The working group represents the first formal bilateral bilateral bilateral regulatory cooperation between the two largest financial centers in the world.
According to the announcement of the Treasury, the collaboration aims to “unlock opportunities for investors, companies and market players on both sides of the Atlantic” while maintaining the regulatory monitoring of digital asset activities.
The initiative responds to the concerns of market players concerning fragmented regulatory approaches which complicate the cross -border operations of digital assets.
The 180-day calendar positions the two governments to provide concrete regulatory recommendations before mid-2026, when several key regulatory executives of digital assets should take a global effect.
