US-UK Financial Innovation Partnership: cryptoasset regulation and market developments

HM Treasury and the US Department of the Treasury participated in the third meeting of the US-UK Financial Innovation Partnership (FIP), which took place in London on 29 June 2022. Participants met to exchange views on topics of mutual interest including crypto and digital asset ecosystems and to deepen ties between US and UK financial authorities on financial innovation.

The US and UK made it clear that both are committed to continuing to cooperate to support safe innovation and strengthening regulatory outcomes for stablecoins. Recent events highlight the key role of stablecoins and crypto-asset trading and lending platforms in the digital asset ecosystem, the variance in their governance and operations, and the need for robust cross-border regulatory cooperation.

Both the Bank of England and the FCA attended to exchange views on cryptoasset regulation and market developments in general, including recent stablecoin developments and the exploration of central bank digital currencies (CBDCs). This included providing updates on CBDC policy research and technology and considering future opportunities for discussion on broader cryptoasset regulatory initiatives.

Participants also noted the importance of continued co-operation on crypto and digital assets in international fora, including the G7 Digital Payments Expert Group, the Financial Stability Board Crypto Assets Working Group and Regulatory Issues of Stablecoins Working Group, the work pursuant to the G20 Roadmap for enhancing cross-border payments, the Committee on Payments and Market Infrastructures, the group of central banks and the Bank for International Settlements (BIS) working together on CBDCs, and the International Organization of Securities Commissions’ FinTech Task Force.

Discussions on these topics, as well as other financial innovation topics of mutual interest, will continue with the next US-UK Financial Regulatory Working Group meeting due to be held in July.

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