US And UK Financial Regulators Form Partnership For Crypto Regulation

The US Department of the Treasury released a joint statement with Her Majesty’s Treasury last week on a collaborative effort on the UK – US Financial Regulatory Working Group.

The group held a meeting on July 21, which was attended by officials and senior staff from HM Treasury, the Bank of England, the Financial Conduct Authority, the US Treasury Department, the Federal Reserve Board, the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC).

US And UK Financial Regulatory Synergy Forged Since 2008

The recent statement revealed that the working group was formed in 2008 “to deepen bilateral regulatory cooperation with a view to the further promotion of financial stability; investor protection; fair, orderly, and efficient markets; and capital formation in both jurisdictions.”

The group evaluated the outcomes of the US – UK Financial Innovation Partnership in a meeting in June. At the meeting, the regulators laid out views on “crypto-asset regulation and recent market developments, including those in relation to stablecoins, and the exploration of central bank digital currencies (CBDCs).” The Treasury further noted:

“All participants committed to continued cooperation to support safe financial innovation, as well as to strengthen regulatory outcomes for stablecoins across jurisdictions.”

The financial regulatory agency also noted: “Participants also considered future opportunities for further discussion on broader crypto-asset regulatory initiatives.”

The statement concluded that both regulators “recognized the continued importance of the ongoing partnership on global financial innovation and acknowledged the importance of both maintaining and further engaging in multilateral discussions on these topics.”

Last month, Chief Executive of the UK Financial Conduct Authority Nikhil Rathi noted: “The US and UK will deepen ties on crypto-asset regulation and market developments — including in relation to stablecoins and the exploration of central bank digital currencies.”