US UK Treasury unveil joint stablecoin regulatory roadmap

The United States and the United Kingdom have unveiled a joint plan to coordinate their regulatory approaches to stablecoins and tokenized financial markets, aiming to reduce cross-border friction and foster innovation. The recommendations, released on July 14 by the U.S. Department of the Treasury and the UK's HM Treasury, were produced by the Transatlantic Taskforce for the Markets of the Future, a bilateral group established last year.

Central to the agreement is a shared principle that payment stablecoins should be fully backed, on at least a one-to-one basis, by high-quality, liquid assets like cash. The framework emphasizes that reserves must be segregated from an issuer's corporate funds and that holders must have clear redemption rights. Officials stated the goal is to support a dynamic, competitive stablecoin market across borders while ensuring strong consumer protections, including clear legal claims on reserves in the event of an issuer's insolvency.

The plan does not introduce new regulations but sets a direction for aligning existing and forthcoming rules in both jurisdictions. A key proposal is the creation of a private-sector-led working group to test...