US-UK Task Force Challenges EU's Crypto Dominance

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 regulatory approaches to digital assets and capital markets. Unveiled on September 22, 2025, during U.S. President Donald Trump’s state visit to the UK, the task force is led by UK Chancellor of the Exchequer Rachel Reeves and U.S. Treasury Secretary Scott Bessent. The initiative seeks to enhance collaboration on digital asset frameworks, with a focus on addressing short- to medium-term challenges while exploring long-term innovations in wholesale digital markets. The task force will report its findings and policy recommendations to both governments within 180 days, emphasizing regulatory harmonization to foster cross-border investment and reduce operational burdens for firms.

The task force’s structure includes joint leadership by HM Treasury and the U.S. Treasury, with participation from regulators such as the UK’s Financial Conduct Authority (FCA) and the U.S. Securities and Exchange Commission (SEC). Industry stakeholders, including major crypto firms like Coinbase, Circle, and Ripple, as well as traditional financial institutions such as Citi and Barclays, were involved in early discussions. The group will prioritize areas such as asset custody standards, anti-money laundering (AML) protocols, and stablecoin oversight, with the latter expected to be a central focus due to the potential for cross-border liquidity improvements.

A key objective of the task force is to create a unified regulatory environment that balances innovation with investor protection. The UK has emphasized supporting digital asset innovation while cracking down on fraudulent activities, while the U.S. has advocated for a technology-neutral approach to avoid stifling growth. This alignment aims to counter the dominance of the European Union’s Markets in Crypto-Assets (MiCA) regulation, which currently represents the most comprehensive global crypto framework. By streamlining Anglo-American policies, the task force could shift the industry’s regulatory center of gravity away from the EU, potentially attracting crypto firms seeking more favorable conditions.

Industry leaders have welcomed the initiative. Coinbase’s regional managing director, Daniel Seifert, highlighted the potential for deeper liquidity and financial inclusion, while Circle’s Dante Disparte described it as a “pivotal step” toward safer, more resilient markets. The collaboration aligns with broader trends in both countries: the UK has accelerated crypto firm approvals, cutting processing times by two-thirds since April 2025, while the U.S. is exploring the feasibility of a Strategic Bitcoin Reserve, leveraging seized crypto assets from cybercrime cases.

The task force’s 180-day timeline reflects urgency in addressing regulatory gaps as digital assets mature. While specific policy proposals remain under development, the initiative signals a strategic effort to position the UK and U.S. as leaders in shaping the next phase of financial innovation. By fostering transatlantic cooperation, the task force aims to reduce fragmentation in global crypto markets, ensuring competitiveness while maintaining stability and trust.