US and UK set joint stablecoin rules, eye $44 billion boost from tokenized assets

The US Department of the Treasury and the United Kingdom’s HM Treasury have released new recommendations to enhance transatlantic cooperation in the rapidly evolving digital asset sector, with particular emphasis on stablecoins and tokenized finance. The recommendations are part of the Transatlantic Taskforce for the Markets of the Future, established by both nations to guide policy and regulation for emerging markets.

Joint framework aims for regulatory alignment

On Tuesday, the Treasury departments from both countries issued a joint statement introducing four recommendations centered on digital assets. As part of their bilateral efforts, the taskforce proposed that authorities consider launching a private-sector-led initiative to test cross-border applications for tokenized assets. In addition, the taskforce called on the US financial agencies and the Bank of England to coordinate approaches in regulating these digital representations of value.

The statement also addressed stablecoins, urging regulatory collaboration to support the development of a “dynamic stablecoin market across borders.” Both governments stressed a commitment to design regulatory requirements that ensure comparable results for similar risks and activities in each jurisdiction. The goal is to maintain financial stability while encouraging healthy cross-border competition and preventing market distortions.

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.

While the joint statement stopped short of referencing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act—signed into law last year and set for implementation in January 2027—it did echo its principles. The recommendations stated that stablecoins should be fully backed, at least on a one-to-one basis, by high-quality and liquid assets, reflecting recent US legislative trends in stablecoin oversight.

HM Treasury serves as the government department responsible for economic and financial matters in the United Kingdom, while the US Department of the Treasury oversees similar responsibilities in the United States. Their collaboration highlights the importance of regulatory synchronization as digital assets begin to play a larger role in global financial markets.

Mini dictionary: Tokenized assets are digital representations of traditional assets, such as stocks, bonds, or real estate, issued and traded on a blockchain. This process aims to increase transparency, reduce transaction costs, and enable faster settlement in financial markets.

Tokenization projected to drive significant UK growth

These latest moves coincide with the release of a report indicating that tokenization could add as much as $44 billion to the United Kingdom’s annual economic output by 2035. The findings, published by a UK government-backed industry task force, emphasize that this growth would depend on the UK maintaining its position as a leading jurisdiction for tokenized assets, global adoption scaling, and increased domestic usage at a pace similar to peer countries.

The report suggests the UK should issue tokenized bonds by the first quarter of 2027 and advance blockchain-based financial transaction testing to cement its leadership in digital asset innovation.

The task force has called for immediate steps, including the launch of tokenized bonds and the further testing of blockchain infrastructure for financial transactions. Recommendations also encourage regulatory stability and alignment with international partners as fundamental to realizing these economic benefits.

The broader context includes growing momentum among governments and regulators for integrating blockchain and digital asset technologies. The US and UK are aiming to demonstrate leadership by evolving their frameworks to meet the needs of a global, interconnected financial system.