UK set to announce closer co-operation with US on cryptocurrencies

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The UK and US are set to announce deeper co-operation on digital assets such as cryptocurrencies, according to people familiar with the matter, bringing Britain closer to the US after Donald Trump embraced the industry.

The drive to build closer transatlantic co-ordination in digital assets and capital markets was discussed on Tuesday between chancellor Rachel Reeves and US Treasury secretary Scott Bessent, the people said.

The idea was debated at a meeting whose attendees included crypto companies Coinbase, Circle and Ripple and banks Citi, Bank of America, and Barclays. 

The agreement was organised “last minute”, one of the people said. Talks were arranged after crypto industry groups wrote to the UK government last Thursday, ahead of Trump’s state visit this week, urging Britain to include digital assets and blockchain in any new deal with the US. Any deal is expected specifically to include stablecoins — crypto tokens pegged in value to traditional currencies.

British officials said Reeves hoped a closer alignment of rules would increase British companies’ access to the world’s deepest and most liquid financial markets, as well as attract greater American investment into the UK. 

The push follows a period of intense political anxiety over an exodus of London-listed companies to the New York Stock Exchange and Nasdaq, as businesses seek higher valuations on the other side of the Atlantic.

Under President Trump, the US has enthusiastically embraced digital assets, while British regulators have been more cautious, concerned about systemic risks and volatile prices. UK cryptocurrency companies have expressed concern that regulators’ stance is leaving them lagging behind US rivals.

The meeting on Tuesday involved significant amounts of discussion around the regulatory alignment of digital assets, according to one person familiar with the matter.

It was notable how much of the conversation focused on digital assets, the person added.

Another person said the feeling was that there was a “huge opportunity for the UK in digital assets” and that the Trump administration’s embrace of the industry meant closer UK-US co-operation would be “vital to unlocking adoption” in Britain. 

Reeves discussed the idea of aligning capital markets — including the regulation of digital assets — over dinner with the US ambassador to London, Warren Stephens, last week. It was viewed as a potential area to explore during Trump’s state visit.

British officials have said they expect that the idea of aligning UK and US capital markets will form one of the announcements to accompany political talks between Trump and Britain’s Prime Minister Sir Keir Starmer on Thursday.

George Osborne, a former Conservative chancellor and now a member of Coinbase’s global advisory council, wrote in the Financial Times last month that Britain was falling far behind the US in its approach to cryptocurrency.

He wrote: “On crypto and stablecoins, as on too many other things, the hard truth is this: we’re being completely left behind. It’s time to catch up.”

The Treasury declined to comment on the details of the proposals. Reeves, writing on X, welcomed Bessent to Downing Street and said: “Together we are delivering investment and opportunity for both our countries.”

British officials said work was also being done with the US over developing digital securities sandboxes, in which companies using blockchain in financial services can test the technology. 

Last year, Securities and Exchange commissioner Hester Peirce proposed that the UK and US create a joint digital sandbox, which would give regulators the ability to see more data in different contexts. Companies involved could serve both US and UK markets. 

In her Mansion House speech in July, the chancellor emphasised the need for the UK’s capital markets to remain globally competitive. Reeves also mentioned Peirce, saying the SEC commissioner was “driving forward proposals” for collaboration on digital topics between the UK and US.