The United States and the United Kingdom are forming a new task force to explore cooperation between the two nations on crypto regulation. Following the announcement of a digital assets cooperation deal between the two, the US and UK have put pen to paper in attempts to bring both nations to the head of the crypto world via a task force. The new group will be called the Transatlantic Taskforce for Markets of the Future.
Rachel Reeves, UK chancellor, and Scott Bessent, US Treasury secretary, agreed to set up the official group after holding talks in Downing Street last week, ahead of President Donald Trump’s state visit to Britain. The Trump administration has been clear on its pro-crypto intent, supporting the growing industry and morphing it into traditional finance. Regulations have been far stricter in the UK under MiCA rules. However, the country seeks to revitalise its capital markets after a prolonged downturn that has seen several companies switch their listings from London to New York.
George Osborne, a former Conservative chancellor and now a member of Coinbase’s global advisory council, wrote in the Financial Times last month that Britain was falling far behind the US in its approach to cryptocurrency. “On crypto and stablecoins, as on too many other things, the hard truth is this: we’re being completely left behind. It’s time to catch up.”
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How Will The US-UK Crypto Task Force Work
The task force, to be chaired by officials from the UK and US Treasury departments, will report back within 180 days with recommendations. It will include regulators from both sides of the Atlantic, responsible for regulating capital markets and digital assets. In addition, the group would also focus on “reducing burdens for UK and US firms raising capital cross-border”, Britain’s finance ministry said Monday.
Furthermore, the US Department of the Treasury outlined the following purposes for the UK-US crypto task force:
- Options for short-to-medium term collaboration on digital assets while legislation and regulatory regimes are still developing, as well as options for long-term collaboration and additional opportunities for wholesale digital markets innovation.
- Options to improve links between our capital markets to enhance the growth and competitiveness of both the UK and U.S. markets, focusing on reducing burdens for UK and U.S. firms raising capital cross-border.
The Taskforce is to be chaired by officials from HM Treasury and U.S. Treasury and include representatives from UK and U.S. regulators responsible for capital markets and digital assets regulation as appropriate.