Is The US–UK Crypto Alliance A Turning Point For Stablecoin Regulation?

[Redator]

The US-UK crypto alliance is heating up, and industry insiders expect stablecoins to take centre stage.

According to a Financial Times report published on September 16, 2025, this development occurred following a meeting between US Treasury Secretary Scott Bessant and Chancellor Rachel Reeves.

Prominent firms such as Coinbase, Circle, and Ripple, along with banking giants including Citi, Bank of America, and Barclays, also attended the talks held in London.

JUST IN: U.S. and UK announce a "closer crypto cooperation" with a focus on stablecoins — creating joint legal standards and digital asset sandboxes to drive cross-border innovation! pic.twitter.com/NehlroZstT

— Good Morning Crypto (@AbsGMCrypto) September 16, 2025

According to the Financial Times, sources close to the development suggested that the meeting was arranged on short notice, primarily spurred by crypto groups’ appeal to the UK government to prioritise digital assets ahead of President Trump’s state visit this week.

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The US-UK Crypto Alliance Hinges On Stablecoins

It appears that the syncing of the US-UK capital markets hinges on stablecoins. According to the report, British officials see regulatory alignment with the US as a means for UK firms to access deeper capital markets and secure fresh American investments.

With London-based companies increasingly incorporating in New York for better valuation, UK officials are eyeing Washington as a counterweight. They hope that closer regulatory ties with the US will help the UK remain competitive in the financial services sector.

The contrast between the two countries’ approaches to crypto in recent months has been stark. While the US, under President Trump, has embraced crypto and various other digital assets with open arms, regulators in the UK have remained cautious.

This has created a divergence, with crypto industry leaders in the UK sounding the alarm over the risk of falling behind their American counterparts.

Per the report, the meeting focused heavily on syncing the US-UK crypto regulatory frameworks, with an attendee describing the event as a “huge opportunity for the UK in digital assets.”

This, however, depends on how the negotiations with the US proceed in this matter.

Chancellor Reaves had also raised the issue of capital market alignment during a private dinner last week with US Ambassador Warren Stephens.

Boosting growth and prosperity is a priority for both the United States and the UK, so it was a pleasure to welcome Chancellor @RachelReevesMP to Winfield House for a discussion on ways to strengthen and expand our economic cooperation as we prepare for @POTUS @RealDonaldTrump’s… pic.twitter.com/0bn3eaR0ce

— Ambassador Warren Stephens (@USAmbUK) September 8, 2025

For now, British officials expect upcoming political talks between President Trump and Prime Minister Keir Starmer to feature talks on greater digital asset coordination heavily. The talks are scheduled to take place on 18 September 2025.

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Stablecoins At The Heart Of A Transatlantic Policy Clash

The debate over stablecoins continues to intensify on both sides of the Atlantic as policymakers, regulators, and industry leaders weigh the future of digital money.

In July, UK Chancellor Rachel Reeves underlined the need for Britain’s capital markets to stay globally competitive, referencing U.S. SEC Commissioner Hester Peirce’s earlier call for a joint US-UK digital sandbox.

She said such a framework would enable regulators to monitor activity across both markets while allowing firms to serve them.

Meanwhile, the U.S. has seen rapid developments. Wyoming became the first state to launch a government-backed stable token, while Congress passed the GENIUS Act, banning stablecoin issuers from paying direct interest.

Today, Commission Chairman & @GovernorGordon announced the mainnet launch of the Frontier Stable Token (FRNT).

This historic move marks Wyoming as the first public entity in the United States to issue a blockchain-based stable token. FRNT is designed to provide secure…

— Wyoming Stable Token Commission (@wyostable) August 19, 2025

Banking associations are pushing lawmakers to close a loophole that could allow issuers to offer yield indirectly through exchanges, warning of potential risks to the U.S. deposit base.

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Key Takeaways

• Sycing of US-UK capital markets hinges on stablecoins as the UK seeks deeper capital market and fresh American investments
• Digital asset coordination expected to be the key talking points in Thursday’s political talks between President Trump and Prime Minister Keir Starmer
• London-based companies increasingly incorporating in New York have sounded alarm bells in the UK, cautioning the authorities of being left behind their American counterparts

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