UK Cooperates with US in Monitoring Crypto Market

Promoting global surveillance

In a rapid move toward regulatory unification, the United States and the United Kingdom are preparing to announce a comprehensive treaty to enhance cooperation on cryptocurrency oversight, with a focus on stablecoins.

The agreement, which came after high-level talks in London on September 16, 2025, underscores a shared vision of harmonizing digital asset rules, mitigating systemic risk and fostering cross-border innovation, the Financial Times reported on September 16, 2025. As the cryptocurrency market capitalization surpasses $4 trillion, the US-UK alliance – formed amid President Donald Trump’s pro-crypto agenda – signals a maturing global framework that could potentially pressure lagging nations like the EU to converge.

The breakthrough came during a last-minute meeting on September 16 at Winfield House, chaired by US Ambassador Warren Stephens, where Bessent and Reeves discussed the role of cryptocurrencies in bilateral relations. Attendees included both TradFi and crypto: Coinbase global advisory board member George Osborne, stablecoin architects Circle, cross-border executives from Ripple, and banking experts from Citi, BofA, and Barclays. Spurred by a coalition of 12 UK trade groups calling for blockchain to be included in the “Tech Bridge” initiative, the discussions prioritized stablecoins—pegged assets like USDC and USDT that handle $160 billion in global trading volume.

Another source described it as “ a major crypto partnership deal! Crypto partnerships are making great strides in global governance, tokenization, and infrastructure. ”

The announcement coincides with Trump's state visit on September 18 to meet with Prime Minister Keir Starmer, where digital assets are expected to feature prominently. This builds on UK draft regulations from April 2025 that would require crypto companies to comply with the same requirements as TradFi, and reserve and audit stablecoins under the US GENIUS Act. No formal text has been released, but sources say there will be a "cross-border testing ground" for two-year supervised trials, as proposed by SEC Commissioner Hester Peirce in July.

Agreements in the meeting

The structure of the treaty targets regulatory arbitrage – companies circumventing regulations by switching jurisdictions – through: Common Standards: Regulating stablecoin issuance (e.g., UK companies’ access to the US market) in line with the GENIUS Act transparency and UK MiCA-inspired codes of conduct.

• Surveillance Mechanism: Joint enforcement of illicit finance, using tools like Chainalysis to monitor transactions; information sharing between Treasury/Federal Reserve and FCA/BoE.

• Innovation Testbed: A transatlantic testbed for tokenized RWAs and DeFi, echoing pledges from the UK’s April fintech week.

• Stablecoin Focus: Exchange rate stability audit, reserve holdings (US Treasuries/cash) and yield recovery - crucial as UK eyes $7 billion in seized BTC sales to boost budget.

Phased rollout: Instant information exchange, testing in Q1 2026. Risks include overreach that will stifle innovation, but advocates like Ripple's Cassie Craddock call it a "template for international cooperation."

Evaluation and Conclusion

The US-UK crypto partnership, focused on stablecoins and joint oversight, signals a new dawn of transatlantic regulation, connecting Trump’s push for innovation with the resurgence of UK fintech. As negotiations create sandboxes and unified rules, it eases arbitrage concerns while freeing up capital—far surpassing Polkadot’s scarcity in scale. For a $4 trillion ecosystem, this is more than oversight; it’s a blueprint for trusted growth where transparency will drive capital in the next chapter of crypto.

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