Bridging the Atlantic: The U.K.-U.S. Transatlantic Task Force and the Future of Global Crypto Regulation

In a significant move that has the potential to reshape the global regulatory landscape for digital assets, the United Kingdom and the United States have jointly launched the Transatlantic Task Force for Markets of the Future. Announced during U.S. President Donald Trump’s state visit to the U.K. in September 2025, this initiative marks a significant step toward regulatory harmonization between two of the world’s most influential financial jurisdictions.

The task force, co-chaired by officials from HM Treasury and the U.S. Department of the Treasury, is set to deliver recommendations within 180 days. Its mandate includes exploring short- and medium-term collaboration on digital assets, developing long-term strategies for wholesale digital market innovation, and improving cross-border capital market access.

A Strategic Response to Fragmented Regulation

Historically, the U.K. and U.S. have pursued distinct paths in regulating digital assets. The U.K. has taken a cautious, consultative approach, focusing on consumer protection and financial stability. Meanwhile, the U.S., which had focused on enforcement-heavy oversight under the prior administration, has taken a big step toward innovation-friendly policies under the Trump administration.  See, for example, our recent post discussing the GENIUS Act, the CLARITY Act and the Anti-CBDC Act.   

The formation of the task force is a strategic response to the growing need for coordinated international standards. Fragmented regulation has long been a barrier to institutional adoption, creating opportunities for regulatory arbitrage and undermining investor confidence. By aligning their approaches, the U.K. and U.S. aim to reduce friction in cross-border capital flows and foster a more predictable environment for digital asset innovation.

Moreover, the task force’s emphasis on industry engagement provides hope that its recommendations will be grounded in practical realities. This increases the likelihood of adoption and reduces the risk of regulatory overreach.

Key Objectives and Scope

• Bridging Regulatory Approaches: Both the U.K. and U.S. are developing their own frameworks for digital assets, and this task force aims to bridge these approaches. It will foster dialogue on crucial areas like licensing, custody, stablecoin standards, disclosures, and cross-border compliance. By doing so, it hopes to reduce fragmented requirements between the two major financial markets.
• Driving Innovation in Digital Assets: The task force will explore short-to-medium-term collaboration on digital assets while legislation is still developing, as well as long-term opportunities for innovation in wholesale digital markets. This includes looking at areas like tokenization, which holds potential for deeper liquidity, broader financial participation, and new capital for businesses.
• Enhancing Capital Market Links: Beyond digital assets, the task force also seeks to improve links between U.K. and U.S. capital markets. The goal is to reduce burdens for firms raising capital across borders, enhancing the growth and competitiveness of both markets. This addresses issues like duplicative requirements that can complicate transatlantic deals.
• Responding to Rapid Change: The formation of the task force acknowledges the rapid technological change occurring in financial markets and the need to maintain the strength of the U.K.-U.S. financial relationship into the future.

Toward a Global Template for Crypto Oversight

Beyond bilateral cooperation, the task force could serve as a template for global crypto regulation. Blockchain technology is inherently borderless, and digital assets often operate across multiple jurisdictions. The absence of coordinated oversight has led to inconsistent enforcement and confusion among market participants.

By aligning their regulatory frameworks, the U.K. and U.S. can set a precedent for other countries. It is reported that 91% of central banks are already exploring digital currencies or stablecoins, underscoring the urgency of cross-border cooperation. The EU has of course already charted its own comprehensive course with the Markets in Crypto-Assets (MiCA) regulation, which is probably viewed as more risk-averse than the U.K.-U.S. approach. The EU will likely continue to adhere to its established framework but will certainly monitor the progress of the U.K.-U.S. task force for any potential impact.

The task force also reflects a broader geopolitical strategy. As China and the EU advance their own digital asset frameworks, the U.K. and U.S. are positioning themselves as leaders in the next era of finance. By leveraging their deep capital markets, legal expertise, and fintech ecosystems, they aim to shape the rules of the game rather than react to them.

Challenges and Open Questions

Despite its promise, the task force faces several significant challenges in its goal to harmonize digital asset regulations:

• Regulatory Divergence: The U.K.’s cautious approach may clash with the U.S.’s (current) more permissive stance.
• Implementation Timelines: Even with a 180-day deadline, translating recommendations into law could take years.
• Defining Digital Assets: Reaching a consensus on which digital assets fall under securities regulation and which do not is a major hurdle.
• Specific Regulatory Areas: Aligning approaches in key areas like:
  • Custody and Exchange Licensing: Establishing common standards for firms that hold or facilitate trading of digital assets.
  • Stablecoin Standards: Agreeing on requirements for stablecoin issuance, such as reserve backing and audit standards. The U.S. mandates 1:1 fiat reserves, while the U.K. is still consulting on high-quality backing.
  • DeFi Risk Frameworks: Addressing the complexities of regulating decentralized finance while balancing innovation and risk mitigation.
  • Disclosures and Governance: Creating consistent expectations for transparency and operational resilience across borders.
• Regulatory Arbitrage: Preventing companies from relocating to jurisdictions with less stringent rules remains a concern.
• Data Sharing and Privacy: Ensuring any data-sharing agreements comply with the privacy rules in both countries.
• Political Changes: Potential shifts in the political landscape in either country could impact or delay the implementation of recommendations.

Conclusion: A Pivotal Moment for Digital Finance

The formation of the U.K.-U.S. Transatlantic Task Force for Markets of the Future can be seen as a strategic inflection point rather than a simple diplomatic gesture. As digital assets move from the fringes to the mainstream, the need for coherent, cross-border regulation has never been greater.  By aligning their approaches, the U.K. and U.S. are laying the groundwork for a more inclusive, innovative, and secure financial system. The future of finance is digital, and the U.S. and U.K. are demonstrating that they prefer that the rules that govern digital assets be written not in isolation, but in collaboration.