UK To Deepen Crypto Ties With US, May Adopt More Pro-Crypto Approach: FT
The UK is set to expand cooperation with the US on digital assets while exploring a more crypto-friendly approach to boost innovation and attract investment.
That’s according to a Financial Times report that cited sources familiar with the matter after discussions on Tuesday between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent.
The story said the initiative seeks to do more to harmonize regulatory frameworks, particularly for stablecoins, and improve UK companies’ access to US financial markets.
The discussions coincide with President Donald Trump’s current state visit to the UK and included executives from Coinbase, Circle, Ripple, USD Coin issuer Circle Internet Group, Bank of America, Barclays and Citigroup.
One of the people cited in the report said that there is currently a “huge opportunity for the UK” in crypto, and that Trump’s pro-crypto stance is seen as “vital” to unlocking digital asset adoption in Britain.
UK officials are reportedly already working with the US to create digital securities sandboxes, which will give companies operating in the financial sector the ability to test blockchain technology.
UK And US Deals Are Likely To Include Stablecoins
According to the FT report, any crypto-centered deals between the UK and US will likely involve stablecoins. These digital assets got a major boost from an adoption and regulatory standpoint after US President Trump signed the GENIUS Act into law.
Trump is also involved in crypto ventures that involve stablecoins. The biggest of these endeavors is USD1, a stablecoin launched by the Trump family-backed World Liberty Financial.
Since its launch in April this year, USD1’s market cap has risen to over $2.65 billion, ranking it as the fifth-biggest stablecoin in terms of capitalization, according to CoinMarketCap.
Top stablecoins by market cap (Source: CoinMarketCap)
In addition to World Liberty Financial, the Trump family is involved in crypto mining, decentralized prediction markets, and even have their own meme coins called Official Trump (TRUMP) and Melania (MELANIA). The President also signed an executive order shortly after taking office to establish a US Strategic Bitcoin Reserve.
While the Trump Administration and the US have pushed forward with pro-crypto policies, the Bank of England was recently slammed for trying to limit stablecoin ownership.
In a recent proposal, the central bank said it wants to cap individual stablecoin holdings to between 10,000 and 20,000 British pounds, which equates to between $13,650 and $27,300. It also wanted to limit the amount of stablecoins businesses could hold.
The industry lambasted the bank for that proposal, and also argued that it would be both difficult and expensive to implement those proposed restrictions.
UK banks have also tried to tame adoption. Around 40% of 2,000 recently surveyed crypto investors said that their banks had either blocked or delayed a payment to a crypto provider.
UK Regulator Considers Waiving Some Rules For Crypto Firms
The pushback the Bank of England received for its stablecoin ownership proposal was followed with new proposals from the UK’s top financial regulator, the Financial Conduct Authority (FCA).
The financial watchdog published a consultation paper today, which sets out the minimum standards that companies operating in the crypto space must meet once the industry is formally brought under its remit. According to the regulator, the rules are designed to balance competitiveness and innovation with protections for consumers while simultaneously ensuring market integrity.
In the consultation paper, the FCA said that many of the rules are similar to ones that apply to institutions in the traditional finance sector.
The financial regulator is also seeking comments on whether the UK’s Consumer Duty, which requires traditional finance firms to deliver good outcomes for their clients, should apply to crypto asset activities and digital asset companies as well.
That comes after His Majesty’s Treasury published its draft legislation for crypto in April. In this draft, plans to bring exchanges, agents and dealers in line with current regulations were outlined.
Those plans signal that the UK is “open for business,” but closed to abuse and fraud, the government said.
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