Key Takeaways
- The governments of the U.K. and the U.S. have agreed to establish a new “Transatlantic Taskforce for Markets of the Future.”
- The taskforce will promote closer collaboration on crypto policy.
- A deal was only reached after an industry lobbying campaign
Ahead of Donald Trump’s recent visit to the U.K., anticipation of an expected transatlantic agreement on technology was high, but it wasn’t clear whether crypto would be included.
After an intense lobbying campaign by the industry, which included appeals from major banks and crypto companies, the two governments ultimately reached a deal.
Crypto and the Transatlantic Relationship
Before Trump arrived in the U.K., a coalition of pro-crypto groups sent a letter to Secretary of State Peter Kyle, asking for distributed ledger technology (DLT to be a “core strand” of the anticipated technology partnership.
“This is a once-in-a-generation opportunity for the U.K. and US to establish the world’s first transatlantic framework for DLT and set the standards of global interoperability,” the letter argued.
“Excluding digital assets from the U.K.-U.S. Tech Bridge would be a missed opportunity” that “risks leaving Britain on the sidelines while others […] shape the future of finance,” it warned.
Industry Lobbies U.K. Government
With so much at stake, the crypto industry doubled down on its lobbying efforts.
As Trump arrived in the U.K., Treasury Secretary Scott Bessent met with his British counterpart Rachel Reeves at an event that was attended by representatives of Coinbase, Circle and Ripple, a spokesperson for The Payments Association confirmed to CCN.
But when the government unveiled a new “Tech Prosperity Deal,” the emphasis was on AI, quantum, and nuclear. Crypto didn’t even receive a passing mention.
Thankfully, on Monday, Sept. 22, the government announced plans for a “Transatlantic Taskforce for Markets of the Future,” intended to “enhance collaboration on capital markets and digital assets.”
While short on concrete commitments, the announcement was widely celebrated by the crypto industry as a first step toward greater alignment between the two countries.
Next Steps for Transatlantic Partnership
With the U.S. and the U.S. committing to work together on crypto policy, industry insiders have highlighted some key areas for cooperation.
According to Riccardo Tordera, Director of Policy and Government Relations at The Payments Association, top priorities should include agreeing standards for custody, creating common rules for stablecoins, and establishing joint approaches to anti-money laundering and fraud prevention.
While negotiating bilateral deals can be challenging, Tordera said an important “practical step” would be the mutual recognition of regulated entities like stablecoin issuers:
“If a stablecoin is fully regulated in the U.S., why shouldn’t it be trusted in the U.K. as well? That kind of recognition would give crypto real traction and convergence between markets,” he told CCN.
However tentative, the recent transatlantic crypto pact signals the kind of geopolitical realignment many in the U.K. have been calling for post-Brexit. But it is important to strike the right balance, Tordera observed.
He argued that the U.K. must cooperate with the U.S. where it can, while staying close enough to the EU to maintain access to its market, although he warned that “it won’t always be able to have it both ways.”
Top Trending Crypto Articles
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
