UK and US Release Joint Statement on Stablecoins to Deepen Transatlantic Digital Asset Cooperation
The UK and US have released a joint statement on stablecoins, indicating that both governments are committed to deepening cooperation in capital markets and the digital asset sector, as reflected in the future transatlantic working group on markets.
Both countries believe that well-regulated stablecoins can enhance financial efficiency, competitiveness, modernize infrastructure, and improve cross-border payment experiences.
They also emphasize the need to promote competitive innovation, maintain stability, protect consumers, and uphold confidence in the monetary system within a multi-currency financial ecosystem.
Source: Public Information
ABAB AI Insight
The UK and US have previously coordinated on fintech regulation through multiple bilateral working groups, similar to information sharing on the crypto asset framework in the early 2020s, which promoted stablecoin pilots to test cross-border efficiency.
On the capital pathway, regulatory agencies and banking resources in both countries are leaning towards joint standard-setting, motivated by the desire to attract global stablecoin issuance and trading volume through coordinated rules, strategically reinforcing London and New York as digital finance hubs.
In response to the implementation of the EU MiCA framework, the UK and US are accelerating their efforts, currently in a phase of competitive cooperation in digital asset regulation, seeking a unified path ahead of other jurisdictions.
Essentially a regulatory change, the UK and US are building a transatlantic regulatory moat for stablecoins through their joint statement, with mechanisms in place for mutual recognition of standards to reduce compliance friction, thereby accelerating the concentration of capital and innovation within the UK and US systems rather than allowing it to spill over.
ABAB News · Cognitive Law
- Joint regulation is joint capital attraction.
- The potential of stablecoins depends on the depth of regulatory coordination.
- Innovation that does not fragment the market is the true lever of financial competition.