To Attract Investment, US and UK Forge Crypto Regulatory Alliance Post-Brexit

The United States and the United Kingdom have announced the formation of the Transatlantic Taskforce for Markets of the Future, a joint initiative aimed at aligning digital asset regulations and enhancing cross-border capital market cooperation. The task force, unveiled during U.S. President Donald Trump’s state visit to the UK in September 2025, will focus on harmonizing regulatory frameworks for stablecoins, asset custody, and anti-money laundering (AML) standards. It is chaired by officials from the U.S. Treasury and HM Treasury, with participation from regulators including the Securities and Exchange Commission (SEC) and the Financial Conduct Authority (FCA). The initiative seeks to reduce regulatory burdens for firms raising capital across both markets while fostering innovation in digital assets.

The task force will deliver recommendations within 180 days, prioritizing short- and medium-term collaboration on digital market infrastructure and long-term strategies for wholesale digital asset innovation. Key areas under review include interoperability of regulatory frameworks, stablecoin oversight, and alignment of AML requirements. The UK’s Financial Conduct Authority (FCA) has recently accelerated approval processes for crypto firms, with approval rates rising to 45% from less than 15% over the past five years. However, applications have declined due to stricter rules, dropping from 46 in 2022–23 to 26 in 2024–25.

The collaboration reflects both nations’ efforts to maintain competitiveness in global finance. The UK, facing post-Brexit challenges in retaining its preeminence as a financial hub, aims to align its regulatory approach with U.S. standards to attract cross-border investment. For the U.S., the Trump administration’s push for technology-neutral regulation is intended to accelerate innovation while ensuring financial stability. Industry groups from both countries have urged clarity on digital asset rules, with major crypto firms like Coinbase, Circle, and Ripple participating in high-level discussions.

Stablecoins are a central focus of the task force, as aligning UK and U.S. rules could improve cross-border access for firms and draw more American investment into the UK’s financial sector. The UK’s FCA is also consulting on whether crypto firms should face the same standards as banks, including governance and consumer protection duties. Meanwhile, the U.S. is considering a Strategic Bitcoin Reserve, leveraging government-held Bitcoin from cybercrime seizures.

The initiative underscores the “deep and historic connection” between the two economies, with officials emphasizing stability, trust, and innovation as guiding principles. The first set of recommendations is expected in early 2026. The task force will report to the UK–U.S. Financial Regulatory Working Group, ensuring recommendations reflect the priorities of businesses and investors. Industry experts, including Circle’s Dante Disparte and Coinbase’s Daniel Seifert, have praised the move as a pivotal step toward safer, more resilient markets.

Chainalysis’ Global Crypto Adoption Index ranks the U.S. second worldwide in crypto adoption, while the UK holds the 11th position but remains a significant hub for crypto activity. The FCA’s recent regulatory updates, such as requiring crypto platforms to collect detailed customer information on trades from January 2026, align with the OECD’s global reporting framework.