The UK Treasury plans to deepen cooperation with the US on crypto regulation, signaling alignment with the pro-innovation stance of President Trump’s administration.
Background:
- The UK Treasury announced its intention to work closely with the United States to promote innovation and regulatory clarity across the cryptocurrency industry, according to a statement released Tuesday.
- Chancellor of the Exchequer Rachel Reeves reaffirmed the UK’s ambition to become a global leader in fintech and digital asset innovation, stating that Britain should be “the best place in the world to innovate.”
- The statement outlines that firms offering services for crypto assets like Bitcoin and Ethereum will soon be subject to new, streamlined regulatory frameworks designed to promote investor confidence and long-term growth under the UK’s Plan for Change.
Why should you pay attention?
- This is one of the strongest signals yet that the UK is looking to align regulatory strategies with a pro-crypto US government, potentially making cross-border crypto operations smoother.
- The UK’s stance could offer greater clarity and stability to crypto companies operating in both jurisdictions, especially following January amendments to the Financial Services and Markets Act 2000, which relaxed rules for firms offering staking services.
- As the UK–U.S. Financial Regulatory Working Group prepares for further meetings, this move may shape international standards for digital asset oversight, giving firms a clearer path to compliance.
Who said what?
- Rachel Reeves, UK Chancellor of the Exchequer:
“Firms offering services for cryptoassets like Bitcoin and Ethereum will be subject to new, clear rules, boosting investor confidence and driving growth through the Plan for Change.”
- Reeves added:
“Britain should be the best place in the world to innovate.”
- UK Treasury statement:
Reeves recently met with US Treasury Secretary Scott Bessent in Washington D.C. to discuss digital asset collaboration, including proposals introduced by SEC Commissioner Hester Peirce, who leads the Crypto Task Force.
- Adding:
The two departments will continue discussions at the UK–U.S. Financial Regulatory Working Group.
Zooming out:
- This shift positions the UK to act as a European counterpart to the crypto-friendly policies of the US under President Trump, who has publicly backed the digital assets industry since taking office.
- As global regulatory landscapes evolve, coordinated approaches between influential economies could lead to standardized compliance frameworks, helping reduce friction for firms operating across borders.
- With growing institutional interest and mounting regulatory clarity, the UK’s proactive posture could further solidify its standing as a leading fintech hub, while echoing the global trend of crypto integration into public policy.
