🇬🇧🤝🇺🇸 Yesterday, HM Treasury published the UK–US Joint Statement on Stablecoins, issued through the Transatlantic Taskforce for Markets of the Future.
It’s a short document, but a consequential one. It signals where two of the world’s most important financial jurisdictions intend to converge.
➡️ KEY HIGHLIGHTS:
→ Stablecoins are affirmed as a genuine vehicle for innovation, not a threat to be contained. Both governments intend to enable their use in payments, settlement, and capital markets across borders.
→ “Comparable outcomes for comparable risks.” The two regimes will be tailored, not identical, but the aim is to avoid market distortion and keep cross-border competition alive.
→ Full backing, at least 1:1, in high-quality liquid assets. A clear line in the sand on reserves, with holder protection at its core.
→ No fragmentation by ring-fencing. Prudential requirements shouldn’t trap resources jurisdiction-by-jurisdiction in ways that break operational efficiency or stifle innovation.
→ Insolvency clarity. In a failure, holders get a protected legal claim on reserves — ranking ahead of other creditors. This is the detail that turns principle into confidence.
→ A pathway to mutual market access. Both sides intend to explore how stablecoins issued in one jurisdiction can reach the other.
The direction of travel is unmistakable: coexistence of multiple forms of digital money: stablecoins, tokenised deposits, and beyond - underpinned by rules designed to enable rather than obstruct.
For everyone building in this space, the question is no longer whether regulated stablecoins have a role. It’s how quickly the market moves to occupy the ground these two governments cleared.
🔗 [link to HM Treasury statement in comments]
#Stablecoins #UK #US
It’s a short document, but a consequential one. It signals where two of the world’s most important financial jurisdictions intend to converge.
➡️ KEY HIGHLIGHTS:
→ Stablecoins are affirmed as a genuine vehicle for innovation, not a threat to be contained. Both governments intend to enable their use in payments, settlement, and capital markets across borders.
→ “Comparable outcomes for comparable risks.” The two regimes will be tailored, not identical, but the aim is to avoid market distortion and keep cross-border competition alive.
→ Full backing, at least 1:1, in high-quality liquid assets. A clear line in the sand on reserves, with holder protection at its core.
→ No fragmentation by ring-fencing. Prudential requirements shouldn’t trap resources jurisdiction-by-jurisdiction in ways that break operational efficiency or stifle innovation.
→ Insolvency clarity. In a failure, holders get a protected legal claim on reserves — ranking ahead of other creditors. This is the detail that turns principle into confidence.
→ A pathway to mutual market access. Both sides intend to explore how stablecoins issued in one jurisdiction can reach the other.
The direction of travel is unmistakable: coexistence of multiple forms of digital money: stablecoins, tokenised deposits, and beyond - underpinned by rules designed to enable rather than obstruct.
For everyone building in this space, the question is no longer whether regulated stablecoins have a role. It’s how quickly the market moves to occupy the ground these two governments cleared.
🔗 [link to HM Treasury statement in comments]
#Stablecoins #UK #US
1