The governments of the United Kingdom and the United States have released a joint statement on stablecoins via the Transatlantic Future Markets Working Group. They intend to align their regulatory frameworks in appropriate areas and support the use of stablecoins for cross-border payments, settlements and capital markets. Both sides agree that stablecoins used as money should be fully backed by high-quality liquid assets at a minimum 1:1 ratio. Reserve assets must be segregated from the issuer’s own funds, and timely redemptions for holders must be guaranteed. If the issuer enters bankruptcy, restructuring or resolution proceedings, holders shall have clear, protected legal claims to the reserve assets with priority over other creditors.

The two countries plan to achieve comparable regulatory outcomes for similar risks and activities, avoiding disproportionate reserve and prudential rules that harm commercial viability or hinder competition. With proper safeguards, regulated stablecoins will be enabled to integrate with banking and other financial services for settlements in securities and commodity markets. They also plan to establish clear pathways for stablecoins issued in each jurisdiction to access the other’s market.