The UK and the US are preparing to cooperate more closely on cryptocurrencies, including stablecoins, according to the Financial Times.
The decision came to the fore following a meeting today between British Finance Minister Rachel Reeves and US Treasury Secretary Scott Bessent.
Both governments are also reportedly developing a joint “digital securities sandbox” program to test blockchain applications in financial services. Cryptocurrency companies like Coinbase, Circle, and Ripple, as well as major banks like Citi, Bank of America, and Barclays, attended the meeting.
Officials said the meeting was organized “at the last minute” following a letter sent by the crypto industry to the UK government ahead of Trump’s official visit this week. The agreement is expected to specifically cover stablecoins.
Reeves reportedly believes that closer regulatory alignment will increase British companies’ access to the deep and liquid US financial markets and attract American investment to the country. This move comes amid growing political concerns over the recent departure of companies from the London Stock Exchange to New York.
While Donald Trump’s administration has expressed strong support for digital assets, UK regulators are more cautious about systemic risks and price volatility. This approach has British crypto companies worried about falling behind their US competitors.
The issue of regulatory harmonization between the two countries was also raised during Reeves’ meeting with US Ambassador to London Warren Stephens last week. British officials expect that the talks between Prime Minister Sir Keir Starmer and Trump on Thursday will also include statements on capital markets harmonization.
Former Chancellor of the Exchequer and Coinbase advisory board member George Osborne wrote in an article for the FT last month, stating that the UK was lagging far behind the US in the cryptocurrency space, and said, “It’s time to catch up.”
*This is not investment advice.