The United Kingdom is preparing to deepen its cooperation with the United States on cryptocurrency policy, signaling a potential shift toward a more crypto-friendly regulatory stance. According to reports, British officials are seeking to align with the Trump administration’s pro-crypto approach to encourage innovation and attract global investment.
High-Level Talks Between UK and US Officials
UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent held discussions on Tuesday focused on digital assets regulation. The talks included executives from leading crypto firms — Coinbase, Circle, Ripple — as well as major banks such as Bank of America, Barclays, and Citi.
The meeting reportedly came after crypto advocacy groups urged the UK government to relax its cautious approach, warning that Britain risked falling behind in global digital asset adoption.
Stablecoins at the Center of Policy
Any joint framework is expected to include stablecoins, a sector prioritized by US President Donald Trump. Stablecoins have been a major growth driver in 2025, with the US setting clear rules under the GENIUS Act.
The UK, however, has faced criticism for its proposed limits on individual stablecoin holdings, capped between £10,000 ($13,650) and £20,000 ($27,300). Industry groups argue such restrictions could stifle adoption and be costly to enforce.
Banking Hurdles Slow Adoption
UK banks have also been cautious. A recent survey of 2,000 crypto investors found that 40% had payments to crypto providers blocked or delayed by their banks. Financial institutions often cite fraud risks, volatility, and scams as reasons for restrictions.
Despite these challenges, the UK government in May proposed a new regulatory framework treating crypto exchanges, dealers, and agents similarly to traditional finance firms, with a strong focus on transparency and consumer protection.
British officials believe that aligning rules with the US could provide domestic companies greater access to American markets and attract fresh capital from US investors. Work is already underway on digital securities sandboxes, allowing blockchain-based financial services to test innovations under regulatory oversight.
Growing Interest Among UK Citizens
Public sentiment also points to long-term growth. A study by insurance firm Aviva found that 27% of UK adults are open to holding crypto in their retirement funds. Around 11.6 million people in the country have owned crypto at some point, and two-thirds of them still hold digital assets today.
The UK’s move to collaborate more closely with the US could mark a turning point for the country’s crypto industry. By reducing regulatory barriers and harmonizing with American rules, Britain aims to boost adoption, attract investment, and solidify its position as a hub for digital asset innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
