The U.S. Department of the Treasury and HM Treasury released a joint statement and recommendations on Tuesday as part of the Transatlantic Taskforce for the Markets of the Future, focusing on digital asset cooperation and stablecoin regulation. The two governments stated that regulated stablecoins have the potential to make financial systems more efficient and competitive. The taskforce, created last year to deepen cooperation and reduce market fragmentation between the United States and the United Kingdom, aims to leverage both nations' positions as leading global financial centers to actively shape the development of digital asset markets and next-generation financial infrastructure. The recommendations emphasize strong standards around custody, reserve segregation, and consumer protections while supporting competition and innovation in stablecoins, tokenized deposits, and similar assets.
Transatlantic Taskforce Issues Digital Asset Recommendations
The task force called on the Bank of England and UK Financial Conduct Authority, and the U.S. Commodity Futures Trading Commission and U.S. Securities and Exchange Commission to develop approaches for the treatment of tokenized assets. They also directed the FCA and the SEC to explore options to facilitate cross-border capital raising.
The joint statement outlined plans to support competition and innovation in stablecoins, tokenized deposits, and other similar assets. The recommendations emphasized the need for strong standards around custody, reserve segregation, and consumer protections.
"Each government endeavors to create a framework that, in the event of insolvency, bankruptcy, restructuring, or resolution proceeding, provides for stablecoin holders a clear and protected legal claim on reserves, including priority ahead of other creditors, consistent with the laws of each jurisdiction," the two governments said in the statement.
GENIUS Act Implementation Progresses Toward July 18 Deadline
The U.S. stablecoin bill, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act), passed into law last year and turns one this week. The GENIUS Act requires stablecoins to be fully backed by U.S. dollars or similarly liquid assets, mandates annual audits for issuers with a market capitalization of more than $50 billion, and establishes guidelines for foreign issuance.
Federal agencies are currently working on rule proposals to implement provisions in that law. During a House Financial Services Committee hearing on Tuesday, Federal Reserve Chair Kevin Warsh was asked where the central bank's progress was in adopting rules and whether it would meet a deadline on July 18.
"We're racing to put that out by this deadline," Warsh said.
FAQ
What did the U.S. Treasury and HM Treasury announce on Tuesday?
The U.S. Department of the Treasury and HM Treasury released a joint statement and recommendations on Tuesday as part of the Transatlantic Taskforce for the Markets of the Future. The statement focused on digital asset cooperation and outlined plans to support competition and innovation in stablecoins, tokenized deposits, and similar assets, while emphasizing strong standards around custody, reserve segregation, and consumer protections.
What does the GENIUS Act require for stablecoin issuers?
The GENIUS Act, which passed into law last year, requires stablecoins to be fully backed by U.S. dollars or similarly liquid assets. It mandates annual audits for issuers with a market capitalization of more than $50 billion and establishes guidelines for foreign issuance. Federal agencies are currently working on rule proposals to implement provisions in the law, with a deadline on July 18.
Why did the U.S. and UK create the Transatlantic Taskforce for the Markets of the Future?
The Transatlantic Taskforce for the Markets of the Future was created last year as a joint initiative to deepen cooperation and reduce market fragmentation between the United States and the United Kingdom. The two governments aim to leverage their positions as leading global financial centers to actively shape the development of digital asset markets and next-generation financial infrastructure.
