US, UK treasuries to align transatlantic rules on tokenization and stablecoinsThe two governments issued recommendations on the treatment of digital assets as the US prepares to implement a 2025 law on payment stablecoins.

The US Department of the Treasury and HM Treasury have jointly issued recommendations aimed at aligning regulations on digital assets, including tokenized finance and stablecoins, as part of their Transatlantic Taskforce for the Markets of the Future. The recommendations encourage the formation of a private-sector group to explore cross-border use cases for tokenized assets and call for both countries' financial regulators—the US agencies and the Bank of England—to coordinate on harmonized regulatory approaches. This effort seeks to establish a dynamic, cross-border stablecoin market while promoting financial stability and minimizing market distortions or barriers to competition.

While the statement did not explicitly reference the US GENIUS Act, set to take effect in 2027, it did reaffirm the principle that stablecoins should be fully backed one-to-one by high-quality, liquid assets—consistent with the US law’s requirements. The coordinated approach indicates a shared recognition by both governments of the need for clear, comparable regulatory standards to manage risks associated with stablecoins and tokenized assets amid their growing use in the financial ecosystem.

Alongside these regulatory efforts, a UK government-backed industry report highlighted considerable economic potential for tokenization, estimating it could add up to $44 billion in annual output by 2035 if the UK becomes a global leader in this space. The report calls for the UK to begin issuing tokenized bonds by early 2027 and to pursue blockchain-based financial transaction testing, underscoring the strategic importance placed on advancing tokenized finance as a driver of economic growth.

The collaboration between the US and UK treasuries reflects a broader trend toward international regulatory coordination on emerging financial technologies. Aligning rules for tokenization and stablecoins may facilitate smoother cross-border transactions and innovation while reducing fragmentation in regulatory regimes. This could ultimately encourage institutional adoption and integration of digital asset frameworks in mainstream financial markets.