Treasury authorities in the United States and the United Kingdom have announced a formal US-UK partnership to coordinate their approaches to crypto regulation and digital asset innovation. In joint notices released on Monday, the departments confirmed the formation of a new transatlantic task force focused on exploring "short-to-medium term collaboration." The group, which will operate under the existing UK-US Financial Regulatory Working Group, is tasked with delivering a report with policy recommendations within 180 days, a move that aims to align the two leading global financial centers on the future of digital markets.

• Two of the world's most powerful financial allies are joining forces to write the rulebook for digital assets
• Specific goals of the new task force, which extend beyond retail trading to the future of wholesale digital markets
• Major industry players like Coinbase are being brought into these high-level government discussions from day one

This announcement formalizes the extension of the "special relationship" between the United States and the United Kingdom into the realm of digital finance. As nations worldwide develop competing frameworks for crypto, this US-UK partnership represents a concerted effort by the Anglo-American financial axis to set a global standard. The initiative aims to harmonize the regulatory environments of New York and London, the world's two preeminent financial hubs, to prevent fragmentation and ensure that innovation can flourish under a clear and compatible set of rules.

The formation of the transatlantic task force is possible because both nations have recently made significant strides in developing their own domestic frameworks for crypto regulation. In the UK, the Financial Conduct Authority recently released a comprehensive proposal for crypto oversight, detailing how it will adapt traditional finance rules to the sector. Simultaneously, the U.S. has seen a major shift towards clarity, a trend underscored by the recent joint statement from the SEC and CFTC promising a more collaborative and less litigious approach. With their own houses increasingly in order, the two allies are now looking outward to coordinate on the international stage.

The scope of the new task force extends beyond just the retail-facing crypto exchanges that have dominated headlines. The group's mandate to explore "wholesale digital markets innovation" indicates a focus on institutional use cases. This includes the complex plumbing of a future tokenized financial system, such as the regulation of tokenized securities, the role of institutional-grade stablecoins, and the potential for using distributed ledger technology for interbank settlement. This focus on institutional finance is a key area where regulatory collaboration is seen as essential.

A notable feature of this initiative is the explicit inclusion of industry expertise from the outset. The task force has been directed to "seek input from leading industry experts," a directive that is already in practice. A representative from the cryptocurrency exchange Coinbase was reportedly present in the initial discussions between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent. This inclusion is critical for companies like Coinbase, whose ambitious plans for a global "super app" depend heavily on a predictable and interoperable regulatory environment across key markets like the U.S. and UK.

Despite the collaborative tone, the two nations approach crypto regulation from slightly different philosophical starting points. The UK Treasury has emphasized a balanced approach that aims to "support innovation while cracking down on fraudsters." In contrast, the current U.S. administration has signaled a desire to scale back on certain regulations and has even explored acquiring Bitcoin for national reserves. How these differing tones are reconciled within the transatlantic task force will be a key factor in shaping the final recommendations and the future of the US-UK partnership on digital assets.

With a tight 180-day deadline to produce a report, the task force is operating on an accelerated timeline that signals the urgency both governments feel on this issue. The recommendations that emerge could have a profound impact, potentially forming the basis for a common approach to digital assets that could be adopted by other G7 nations. This effort at regulatory collaboration is a critical step in building a mature, global, and trusted ecosystem for digital finance.

FAQs

What is the new US-UK partnership on crypto?
The U.S. and UK Treasury departments have formed a new transatlantic task force to work together on crypto regulation. The goal is to explore how the two countries can align their rules and collaborate on digital asset innovation.

What is the main goal of this transatlantic task force?
The primary goal is to achieve regulatory collaboration. The task force will produce a report with recommendations within 180 days on how the U.S. and UK can create a more harmonized legal framework for digital assets and wholesale digital markets.

Why is this US-UK partnership significant?
It represents a major effort by the world's two leading financial centers, New York and London, to create a common approach to crypto regulation. This alignment could set the standard for other countries around the world.

Are crypto companies involved in this process?
Yes, the task force has been explicitly directed to seek input from industry experts. Coinbase, a major cryptocurrency exchange, has confirmed its involvement in the initial discussions, highlighting the collaborative nature of the initiative.