US, UK deepen stablecoin talks after GENIUS Act

US and UK financial regulators have expanded talks on stablecoins, tokenization and digital asset oversight as Washington begins implementing the GENIUS Act.

Summary

• The 13th UK-US regulatory meeting took place in London on July 8.
• US officials briefed UK regulators on GENIUS Act implementation and crypto market structure.
• Both governments support one-to-one stablecoin backing and greater cross-border regulatory coordination.
• The Bank of England has replaced proposed holding limits with a £40 billion issuance cap.

US, UK regulators discuss stablecoin policy

Senior officials from HM Treasury and the US Treasury met in London for the 13th UK-US Financial Regulatory Working Group meeting, according to an Aug. 4 joint statement.

Representatives from the Bank of England, Financial Conduct Authority, Federal Reserve, Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency also attended.

Digital finance formed a central part of the July 8 meeting. US officials updated their UK counterparts on the implementation of the GENIUS Act, which establishes a federal framework for payment stablecoins, and on continuing work to define the country's broader digital asset market structure.

Officials also discussed tokenization, payment modernization and the G20 Cross-border Payments Roadmap. UK representatives provided an update on the country's Wholesale Financial Markets Digital Strategy and the appointment of Christopher Woolard as Wholesale Digital Markets Champion.

The meeting did not produce new regulations or binding agreements. However, both sides reaffirmed support for the "responsible use and growth of digital assets" alongside consumer protection and financial stability, according to the official working group statement.

GENIUS Act raises pressure on UK stablecoin rules

The talks come as the United States moves from stablecoin legislation toward implementation, giving issuers and financial institutions a clearer route to operate under federal rules.

The UK is still completing its own framework. The FCA is expected to oversee the issuance, custody and trading of qualifying UK stablecoins, while the Bank of England will jointly regulate stablecoins considered systemically important.

Coordination could become important for US stablecoin issuers seeking access to UK payment and capital markets. Differences in reserve requirements, custody rules and insolvency protections could otherwise force issuers to maintain separate structures in each country.

The two governments addressed that risk in a separate July 14 statement from the Transatlantic Taskforce for Markets of the Future. They said their goal was to promote convergence where appropriate without replacing either country's domestic regulatory process.

"Stablecoins held out as money should be fully backed," the governments said.

The joint stablecoin statement called for at least one-to-one backing with high-quality liquid assets, segregated reserves and timely redemption. It also proposed exploring a pathway for stablecoins issued in one jurisdiction to enter the other market.

Bank of England softens earlier restrictions

The Bank of England has already revised some of its more restrictive stablecoin proposals following industry feedback.

In June, the central bank abandoned proposed per-coin holding limits of £20,000 for individuals and £10 million for businesses. It replaced them with a temporary £40 billion issuance guardrail for each systemic stablecoin, allowing users to transact without individual limits.

The Bank also reduced the share of reserves that systemic issuers must hold as non-interest-bearing central bank deposits from 40% to 30%. The remaining 70% may be held in short-term UK government debt under the steady-state framework.

These changes bring the UK closer to the shared US-UK position that reserve rules should protect holders without creating barriers that make stablecoin businesses commercially unworkable. The Bank of England plans to finalize its systemic stablecoin code by the end of 2026.

What comes next for transatlantic stablecoins

The next phase will depend on how US agencies implement the GENIUS Act and whether the two countries convert their shared principles into formal market-access arrangements.

Key unresolved issues include the treatment of foreign-issued stablecoins, regulatory recognition between jurisdictions, reserve custody and procedures for cross-border issuer failures.

The Financial Regulatory Working Group plans to meet again in early 2027. Until then, the July recommendations provide a policy direction rather than a unified transatlantic regime, leaving issuers subject to separate US and UK requirements.