The United States and United Kingdom have outlined a plan to align parts of their digital asset and capital market rules. This plan includes backing cross-border stablecoin use, one-to-one reserve standards, and stronger protections for holders if an issuer fails.

Key Recommendations

The U.S. Department of the Treasury and HM Treasury released 10 recommendations from the Transatlantic Taskforce for Markets of the Future. Alongside them, the governments published a separate 10-point joint stablecoin statement. These documents set shared policy goals and identify regulatory work for agencies in both countries.

The joint statement says stablecoins marketed as money should be backed at least one-to-one by high-quality, liquid assets. It also calls for reserve assets to remain segregated from an issuer’s own funds, timely redemption of obligations, and clear disclosures about holders’ legal rights.

In the event of insolvency, bankruptcy, restructuring, or resolution, the governments said their frameworks should give stablecoin holders a clear and protected claim on reserves, including priority ahead of other creditors, subject to each country’s laws.

Exploring Pathways for Stablecoins

The United States and UK also intend to explore a pathway for stablecoins issued under one jurisdiction’s rules to enter the other market. Both governments supported fair, risk-based access to banking and financial markets for lawful, regulated digital asset providers and the use of stablecoins in payments, settlement, and tokenized securities or commodities markets, subject to safeguards.

Original reporting: The Dallas Express — read the source article.