UK and US agree principles for stablecoins

The Transatlantic Taskforce for Markets of the Future published on July 14, 2026 the transatlantic principles for stablecoins. The United Kingdom and the United States supported liquid reserves, segregation, redemption and insolvency and avenues for international activity. The declaration sought convergence, but did not create mutual recognition or automatic passport.

Common results, not a single law

Both countries had developed their own frameworks. The United States enacted the GENIUS Act in 2025 and its agencies were preparing rules. The United Kingdom had published the FCA package in June 2026 and systemic rules remained under the Bank of England.

The taskforce did not replace those processes. It identified outcomes that should be comparable to facilitate activity: backing, redemption, insolvency protection, supervision and risk-based banking access.

A company licensed in one country still needed to comply with the other. The agreement could lay the groundwork for future equivalence or reciprocity, but did not grant permits on July 14.

Reserves and redemption

Governments supported at least one-to-one backing in high-quality liquid assets. The reserve currency must correspond to the reference and be available for redemption. An accounting figure is not enough if the assets are committed or mature late.

Segregation protects against the issuer’s creditors and facilitates repayment. You need contracts, custody and records. If the assets are held in banks, it should be clarified that the holder of the stablecoin is not necessarily an insured depositor.

Redemption at par requires a published policy, time limits and treatment of fees. International users need to know in which country and against which entity they are making a claim. A dealer can add separate risk.

Insolvency and cross-border activity

A global stablecoin can have an issuer, reserves, custodians and users in different jurisdictions. If it fails, two laws can claim priority. The principles promote clear protection and cooperation between supervisors.

Formal pathways for foreign issuers can reduce duplication. But they require that the home supervisor have comparable standards, information sharing, and the ability to act. Reciprocity should not become regulatory arbitrage toward the weaker rules.

Risk-based banking access was another priority. A bank should not reject every crypto company by category, but it should evaluate clients, reserves and flows. Cooperation does not eliminate AML or sanctions.

Tokenization and capital markets

The task force also addressed tokenised securities, settlement and wholesale markets. Stablecoins can serve as on-chain cash, but the legal finality of payment must be coordinated with delivery of securities.

The two countries sought to connect sandboxes and learning. A pilot does not authorize cross-border production. Every infrastructure needs rules on custody, records and settlement finality.

Tokenization also does not change the nature of the asset. A share remains a security in both markets. Cooperation must respect differences in registration and ownership.

What companies should do

Issuers could compare their structure with the principles, but not base an offer on the statement. They needed licences, an appropriate legal entity and policies in place. Future convergence does not cure existing breaches.

The contracts had to provide for foreign clients, redemption and conflicts of law. Marketing as “approved on both sides” would be misleading without concrete authorization.

It is also advisable to document which supervisor receives complaints and how information is exchanged when an incident affects reserves in the other country.

Outlook from 2026

As of August 7, 2026, the recommendations were a recent policy framework. There was no transatlantic passport derived from them. Supervisors still had to convert objectives into legal mechanisms.

The value of the agreement is in reducing divergences on backing and insolvency before global issuance grow. The test will be whether it produces verifiable recognition without weakening protection.