UK and US governments announce joint regulatory framework for stablecoins, requiring 1:1 backing by high-quality assets and cross-border market access pathways.
DeFi & Yields ·
The UK and US governments released a joint statement committing to coordinated stablecoin regulation and cross-border payment infrastructure. The announcement establishes that stablecoins functioning as money must maintain at minimum 1:1 backing through high-quality liquid assets, with reserves kept separate from issuer capital. Holders must retain clear, protected redemption rights and claims protected in insolvency scenarios.
Both governments pledge to pursue aligned regulatory outcomes proportionate to the risks presented by comparable activities, while rejecting reserve or prudential rules that could unduly restrict competition. The framework prioritizes risk-based access to financial services for regulated stablecoin providers operating across jurisdictions.
A stated objective involves establishing pathways permitting stablecoins issued in either nation to operate in the counterpart market, though the specifics of how such access will function remain to be defined. The timeline for implementation and the formal regulatory mechanisms through which these commitments will be executed have not yet been detailed.