US and UK Forge Crypto Alliance to Boost Innovation

UK Seeks Closer Ties With US Crypto Policy

The United States and the United Kingdom are reportedly preparing to announce a new cooperation deal on digital assets, signaling a major policy shift for Britain. According to the Financial Times, UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent met on Tuesday to discuss aligning the two nations’ regulatory approaches.

The talks included representatives from Coinbase, Circle, and Ripple, alongside banking giants Barclays, Citi, and Bank of America. The agreement reportedly came together “last-minute” after crypto advocacy groups urged the UK government to take a more open stance, warning that its cautious approach had left the country lagging behind in innovation and policy.

Stablecoins at the Core of the Deal

The cooperation is expected to place stablecoins front and center. Stablecoins have become a policy priority under President Donald Trump, whose administration has consistently pushed for broader integration of the asset class into financial systems.

The potential deal comes just days after UK advocacy groups slammed the Bank of England’s proposal to cap individual stablecoin holdings at between £10,000 and £20,000. Critics called the idea costly, impractical, and damaging to adoption.

UK Banking System Still Holding Back

Despite regulatory progress, UK banks remain a bottleneck for adoption. A recent survey of 2,000 crypto investors revealed that 40% had experienced blocked or delayed payments to crypto providers.

Banks often cite concerns over volatility, scams, and fraud, but crypto firms argue the restrictions are inconsistent and stifling. The UK government has already outlined a regulatory framework that would treat exchanges and brokers like traditional finance firms, with a heavy emphasis on transparency and consumer protection.

Reeves hopes that aligning British rules with the US will not only open access to American markets but also draw more US investment into London’s financial hub.

Digital Securities Sandboxes on the Horizon

British officials confirmed that joint projects are already underway, including digital securities sandboxes where firms can test blockchain-powered financial services. These regulatory testbeds could provide companies with space to innovate under supervised conditions, reducing risks while promoting experimentation.

The idea mirrors similar initiatives in the US, where regulators have allowed limited pilots to trial blockchain-based markets and tokenized financial products. If successful, the UK could position itself as a bridge between US markets and Europe.

Public Appetite for Crypto Grows in the UK

While regulators debate policy, the UK public is warming to crypto as a long-term investment. A survey from insurance group Aviva found that 27% of adults would consider crypto in their retirement funds. Among those, more than 40% cited higher potential returns as the main motivation.

About one in five UK adults—around 11.6 million people—have held crypto, and two-thirds of them still do. This shows a steady base of adoption despite restrictive policies and banking hurdles.

With Reeves signaling alignment with Washington, industry insiders believe the UK could unlock the next stage of adoption by giving businesses and investors clearer rules, greater access, and stronger international partnerships.