The United States and the United Kingdom have reached a consensus on stablecoin regulations, aiming to facilitate cross-border financial transactions. This joint position, developed through the Transatlantic Taskforce for Markets of the Future, supports the use of well-regulated stablecoins for faster payments, enhanced competition, and modern financial systems.
The agreement emphasizes that stablecoins functioning as money must be fully backed on a one-to-one basis by high-quality, liquid assets. Reserve and liquidity standards are intended to mitigate risks without creating undue barriers to entry or hindering cross-border competition. Key focuses include custody, segregation of reserve assets from company funds, and ensuring timely redemption for stablecoin holders. In cases of insolvency or restructuring, both governments support clear legal claims for stablecoin holders, granting them priority over other creditors, subject to national laws.
This development coincides with President Donald Trump's renewed push for the Senate to pass the CLARITY Act before its August recess, as part of his initiative to establish the U.S. as a global leader in cryptocurrency. However, banking industry groups have voiced concerns that the bill's current language remains ambiguous and could create loopholes, potentially encouraging a shift of deposits from traditional banks to stablecoins, thereby increasing pressure on smaller regional lenders.