Treasury authorities in the United States and the United Kingdom have unveiled a collaborative initiative focused on digital assets through the establishment of a transatlantic task force. This newly formed group aims to delve into short- to medium-term collaborative efforts regarding cryptocurrencies and related technologies. The announcement was made in notices issued by both the US Treasury Department and HM Treasury, indicating that the initiative will operate within the framework of the existing UK-US Financial Regulatory Working Group.
The task force, officially named the Transatlantic Taskforce for Markets of the Future, is expected to produce a comprehensive report outlining recommendations for cooperation on digital asset regulation within a timeframe of 180 days. Key areas of focus will include assessing existing crypto laws, regulations, and innovative approaches to wholesale digital markets.
This announcement comes in the wake of a significant meeting held last week between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent. Discussions during this meeting also included representatives from various cryptocurrency firms, enhancing the collaborative spirit of the initiative. The task force has expressed its intention to seek input from industry experts, ensuring that the forthcoming recommendations are well-informed by the needs and concerns of the digital asset market.
The US Treasury, however, did not clarify whether the formation of this task force is directly linked to any specific legislation currently pending in Congress, such as the recently enacted GENIUS Act, aimed at establishing a regulatory framework for payment stablecoins. This act mandates that the US Treasury Department develop regulations in collaboration with the Federal Reserve before these can be put into practice.
In a show of solidarity, cryptocurrency exchange Coinbase publicly endorsed the US-UK partnership via a post on its blog, expressing pride in its role in this collaborative effort. Daniel Seifert, the exchange’s vice president and regional managing director for Europe, the Middle East, and Africa, was reportedly a participant in the discussions between Reeves and Bessent.
Both countries have recognized the necessity of addressing regulatory challenges pertaining to digital assets as they look towards 2025. During a recent meeting, UK Prime Minister Keir Starmer and US President Donald Trump signed a memorandum of understanding aimed at exploring technological advancements, including artificial intelligence, although this agreement remains non-binding.
The UK Treasury under Chancellor Reeves had previously signaled a commitment to focusing on regulatory frameworks that foster innovation while simultaneously combating fraudulent activities within the crypto sphere. Conversely, the US Treasury, under Secretary Bessent, has suggested a more lenient approach by exploring “budget-neutral pathways” for acquiring Bitcoin as part of the overall strategy for the US government’s cryptocurrency reserves.
As both nations continue to navigate the complexities of cryptocurrency regulation, the joint efforts of the newly formed task force are anticipated to play a crucial role in shaping the future of digital asset markets across the Atlantic.
