US, UK Treasury Departments Issue Joint Recommendations on Stablecoins, Tokenized Assets
Summary
- The US Treasury Department and the UK’s HM Treasury said they will jointly refine regulation for stablecoins and tokenized assets.
- The two countries said they agreed to foster a dynamic cross-border stablecoin market, improve regulatory interoperability, and require backing by liquid assets at a minimum 1:1 ratio.
- An industry task force under the UK government said a strategy to become a leader in tokenization could generate as much as $44 billion in annual economic value by 2035.
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The US Treasury Department and the UK’s HM Treasury will jointly refine regulation for stablecoins and tokenized assets.
Cointelegraph reported on July 14 that the two finance ministries issued four joint recommendations on digital assets as an outcome of the Transatlantic Taskforce for Future Financial Markets.
The recommendations center on two areas. On tokenized assets, they call for a private sector-led consultative group to test cross-border use cases and for US financial authorities and the Bank of England to develop a common approach to tokenized-asset regulation. On stablecoins, the two countries said they will improve regulatory interoperability to foster a “dynamic cross-border stablecoin market.”
In a joint statement, the two governments said they will coordinate requirements so that similar risks and activities produce comparable outcomes. The goal, they said, is to promote financial stability while avoiding market distortions or barriers to cross-border competition.
On stablecoins, the two sides also agreed on a principle that they should be fully backed at a minimum 1:1 ratio by high-quality liquid assets. That is consistent with the GENIUS Act, the US stablecoin law signed last year. The law is due to take effect in January 2027 and is still awaiting detailed implementing rules.
Alongside the joint statement, an industry task force under the UK government said in a separate report that Britain could generate as much as $44 billion in annual economic value by 2035 if it establishes itself as a leader in tokenization and global tokenization adoption expands. The report urged the government to pursue issuance of tokenized government bonds and tests of blockchain-based financial transactions by the first quarter of 2027.
