US and UK treasuries align rules on tokenization, stablecoins
The US and UK treasuries issued joint recommendations to align rules on tokenized assets and stablecoins, urging shared regulatory approaches and one-to-one backing for stablecoins.
The US Department of the Treasury and HM Treasury on Tuesday published joint recommendations through the Transatlantic Taskforce for the Markets of the Future aimed at aligning rules for tokenized assets and stablecoins.
The document sets out four recommendations focused on digital assets. It asks authorities to consider a private-sector-led group to test cross-border use cases for tokenized assets and requests US financial agencies and the Bank of England identify shared regulatory approaches for tokenized assets.
On stablecoins, the treasuries called for regulatory alignment to enable a “dynamic stablecoin market across borders” and stated stablecoins should be fully backed, on at least a one-to-one basis, by high-quality, liquid assets. The joint statement added that each government will tailor requirements to seek comparable outcomes for comparable risks and activities while aiming to advance financial stability and avoid market distortions or disincentivizing cross-border competition.
The joint statement read: “Each government intends to tailor its requirements to seek comparable outcomes for comparable risks and activities, seeking to advance financial stability while avoiding market distortions or disincentivizing cross-border competition.”
The recommendations do not explicitly reference the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, the US law signed last year that requires full backing for stablecoins. The GENIUS Act is awaiting implementing regulations and will take effect in January 2027 once rules are finalized.
Task force materials highlighted testing and coordination as immediate priorities. The proposed private-sector testing group would run trials of cross-border tokenized asset use cases to identify legal, operational and technological frictions. Public authorities would work to harmonize supervisory and regulatory stances where feasible.
Separately, a UK government-backed industry task force estimated tokenization could add up to $44 billion to the UK’s annual economic output by 2035 if the country becomes a leading jurisdiction, tokenization scales globally and domestic adoption rises in line with peers. That report recommended issuing tokenized bonds by the first quarter of 2027 and conducting live tests of financial transactions on blockchain infrastructure.
The treasuries presented the recommendations as a way to support financial-market innovation while safeguarding market integrity.
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