Last week, the U.S. Department of the Treasury released a joint statement on the U.K.-U.S. Financial Regulatory Working Group.
On July 21, the group held a meeting. The participants included senior staff members from HM Treasury and the Bank of England, the Financial Conduct Authority and the U.S. Treasury Department.
According to the statement, the financial regulatory group was established in 2008 to promote financial stability, investor protection, fair, orderly and efficient markets, capital formation, and financial stability in both countries.
The regulators reflected upon the June U.S.-U.K. Financial Innovation Partnership meeting results. The Treasury elaborated, saying that they exchanged views about ‘cryptoasset regulation and market developments’, including those relating to stablecoins and the exploration central bank digital currencies (CBDCs).
All participants agreed to continue cooperation in order to support safe financial innovations and to improve regulatory outcomes for stablecoins within jurisdictions.
The Treasury stated that participants also discussed future opportunities to discuss broader crypto-asset regulatory initiatives.
The statement concluded that the U.S. regulators and the U.K. regulators’recognized and acknowledged the continuing importance of the partnership on global financial innovations and acknowledged the importance both maintaining and further engaging multilateral discussions about these topics.
In July, Nikhil Rathi (UK Financial Conduct Authority) stated that the U.S.-UK ties will be deepened on crypto-asset regulation, market developments, and stablecoins.
In May’s Speech, the British government outlined their legislative agenda. This included’safe adoption of cryptocurrencies’. It also has an plan for making the country a global cryptocurrency hub and ‘a welcoming place for crypto. This includes establishing a dynamic regulatory framework, regulating stablecoins and working with Royal Mint to create non-fungible tokens (NFT). The country’s Law Commission, an independent statutory body, published suggestions to reform laws related to digital assets last week.