Recent UK regulations aim to treat crypto entities similarly to traditional finance firms, emphasizing transparency and consumer protection, with the goal of facilitating market access and attracting US investment.

The US and UK are actively exploring closer cooperation on digital asset regulations, with a focus on stablecoins, to promote mainstream adoption of cryptocurrencies and attract investment.

This collaboration was discussed during a meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, attended by representatives from major crypto firms like Coinbase, Circle, Ripple, and banking giants such as Citigroup and Bank of America.

Discussions also include aligning capital markets and digital asset regulations, with potential implications for trade and regulatory frameworks during high-profile visits, such as US President Trump's upcoming trip to the UK.

Despite regulatory progress, UK banks have slowed crypto adoption, with 40% of surveyed investors experiencing blocked or delayed payments due to concerns over volatility, fraud, and scams.

Market sentiment remains optimistic, as the US-UK pact signals a unified approach to combating illicit activities and fostering innovation, likely encouraging institutional investment in crypto funds and ETFs.

The UK government is also considering a cap on stablecoin holdings, which industry critics warn could hinder growth, amid ongoing debates about future stablecoin regulation on both sides of the Atlantic.

Historical data suggests positive regulatory news can lead to surges in trading volumes, with Bitcoin's 24-hour trading volumes potentially increasing by 20-30%, creating trading opportunities.

Global regulatory efforts are advancing, with the US launching a state-backed stablecoin in Wyoming and passing legislation like the GENIUS Act, while the UK is working on proposals and petitions to support stablecoins.

Participants believe that closer UK-US cooperation could unlock significant opportunities in digital assets, including joint digital sandboxes for data sharing and market access, with ongoing talks planned later in the week.

A UK survey indicates that 27% of adults are open to including crypto in retirement funds, motivated by higher return potential, with about 11.6 million people having held or holding crypto.

In the US, the passage of the GENIUS Act in July 2025 established a comprehensive federal framework for stablecoins, including rules on reserves, audits, and transparency, supporting the growth of stablecoin payments.

The UK and US are working towards standardizing oversight of cryptocurrencies and stablecoins like USDT and USDC, aiming to reduce risks and boost market confidence through regulatory alignment.