Bank of England Calls for Closer U.S.–U.K. Cooperation on Crypto Regulation
British central bank officials emphasize the need to align stablecoin and digital asset oversight as both jurisdictions advance regulatory reforms.
Transatlantic Regulatory Alignment
The Bank of England is calling for deeper coordination between the United States and the United Kingdom on cryptocurrency regulation, underscoring the growing importance of unified oversight in global financial markets. Deputy Governor Sarah Breeden stated that it is “really significant” for the two countries to synchronize their regulatory approaches, particularly in the oversight of stablecoins. She noted that discussions are already underway between the Bank of England, the U.S. Federal Reserve, and respective finance ministries.
The push for cooperation comes as both countries refine their approaches to digital asset oversight. The United Kingdom is in the process of finalizing a comprehensive regulatory framework for cryptocurrencies, while the United States continues to issue incremental guidance for financial institutions interacting with the sector. Officials on both sides of the Atlantic have expressed concern that inconsistent rules may lead to regulatory arbitrage, uneven risk management, and fragmented market standards.
Stablecoin Oversight in Focus
Stablecoins are at the center of the regulatory dialogue. These digital tokens are pegged to traditional assets such as the U.S. dollar or British pound and are increasingly used in payment systems and crypto trading. The Bank of England plans to launch a consultation focused on stablecoins deemed “systemic”—those that could play a significant role in everyday payments or financial infrastructure. Under the U.K.’s proposed framework, the Financial Conduct Authority would regulate smaller non-systemic stablecoins, while the central bank would overview issuers with potential systemic influence.
Alignment with U.S. regulatory developments is expected to influence the final structure of U.K. oversight. In the United States, regulators have recently provided more clarity on how banks and service providers may engage with crypto markets, though comprehensive federal legislation is still pending. Both countries aim to ensure that stablecoin arrangements are backed by strong operational resilience, robust reserve assets, and clear redemption rights for users.
The call for closer U.S.–U.K. cooperation occurs against the backdrop of broader global efforts to create consistent international standards for digital asset markets. Global institutions, including the Financial Stability Board and the International Monetary Fund, have highlighted the need for coordinated frameworks to address cross-border risks in crypto trading and digital payments. Without harmonized standards, policymakers warn that operational failures, liquidity mismatches, or market volatility could spill across jurisdictions.
The Bank of England’s focus reflects the increasing relevance of digital assets in mainstream finance. As more companies, payment providers, and financial institutions explore blockchain-based settlement and tokenized assets, regulators viewk to ensure that innovation develops within clear and stable guardrails.
While the timeline for fully harmonized U.S.–U.K. rules remains uncertain, ongoing dialogue signals a shared strategic priority: fostering innovation in digital finance while secureguarding market integrity and financial stability.
