U.S. and UK Back Cross-Border Stablecoins Under Joint Regulatory Plan

• U.S. and UK regulators plan clearer cross-border access for stablecoins approved in either jurisdiction.
• One-to-one reserves, asset segregation, and clear redemption rights anchor the joint regulatory framework.
• The plan expands stablecoin use across payments, securities settlement, and tokenized financial markets.
• Regulators favor comparable outcomes over identical rules to lower costs and protect market competition.

The United States and the United Kingdom have moved to align their digital-asset rules by supporting regulated stablecoins in cross-border finance. The agreement places payment tokens within a plan covering international settlement, tokenized markets, and regulatory cooperation.

The joint approach came through the Transatlantic Taskforce for Markets of the Future, established in September 2025 by Scott Bessent and Rachel Reeves. Officials from both treasuries and financial regulators consulted industry participants before developing proposals on digital assets and capital markets.

Cross-Border Access Hinges on Strong Reserve Safeguards

Under the plan, stablecoins authorized in one jurisdiction could gain clearer entry routes into the other market. However, each token would still face domestic laws, licensing standards, and supervisory approval.

Both governments backed one-to-one reserve requirements for tokens presented as money. Accordingly, issuers would need high-quality, liquid assets worth at least the value of the stablecoins in circulation.

In addition, those reserves must remain separate from corporate funds, limiting the risk that company liabilities affect customer backing. Holders would also receive clear redemption rights and timely access to the tokens’ underlying value.

These safeguards would remain important if an issuer failed. Therefore, the framework covers insolvency, bankruptcy, and restructuring while protecting holders’ legal claims over reserve assets during those proceedings.

Depending on national law, those claims could rank ahead of other creditors. That protection would strengthen the legal position of users when an issuer can no longer operate.

Meanwhile, the U.S. and UK warned against excessive local reserve demands. They argued that disproportionate ring-fencing could divide global operations, raise costs, and reduce competition.

Instead, the plan focuses on comparable regulatory outcomes rather than identical rulebooks. This structure allows both financial systems to preserve domestic differences while coordinating custody, reserves, and failure management.

Separate Rulebooks Move Toward Coordinated Oversight

The agreement arrives as both countries advance their own stablecoin regulations. In the United States, President Donald Trump signed the GENIUS Act in July 2025. The law created a federal framework for payment stablecoin issuers.

It also introduced rules covering reserve management, public disclosures, and controls against illicit financial activity. Meanwhile, the UK Financial Conduct Authority issued final rules in June 2026 for authorised issuers.

Those rules govern token issuance and the safeguarding of backing assets. Under the framework, the FCA will oversee most qualifying stablecoins. However, systemic payment tokens will come under joint supervision from the FCA and the Bank of England.

The Bank has also proposed a code for systemic sterling-denominated tokens. Its plan requires reliable redemption, high-quality reserves, and user protections if an issuer fails. The central bank expects to finalize that code by the end of 2026.

Together, these domestic measures provide the clear legal foundation for future recognition arrangements. Beyond payments, the joint plan supports stablecoin use in securities and commodities settlement. It calls for lawful digital-asset firms to receive fair, risk-based banking access.

The next phase will therefore focus on market-entry procedures, supervisory coordination, and cross-border recognition. Those steps will determine how the political agreement becomes an operating framework between the two financial centers.

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