UK Teams Up With U.S. on Crypto Regulation Draft

Britain is strengthening its regulatory ties with the United States in the digital asset space as part of efforts to establish clear market rules and promote responsible innovation in the sector. 

Chancellor Rachel Reeves, speaking at the Innovate Finance Global Summit, confirmed ongoing talks with U.S. counterparts and announced the release of a draft bill aimed at regulating crypto assets.

As part of preparations for the upcoming UK–US Financial Regulatory Working Group meeting scheduled for June 2025, the UK is laying the groundwork for a transatlantic roadmap aimed at aligning the two countries’ approaches to digital asset regulation.

Related: UK Crypto Regulations Including Stablecoins Coming in 2025

U.K. Deepens Crypto Ties With U.S.

In late April, U.K. Chancellor Rachel Reeves met with U.S. Treasury Secretary Scott Bessent to discuss advancing innovation in the digital asset sector and setting common standards for trading digital securities.

The talks also covered the proposed cross-border sandbox initiative, championed by SEC Commissioner Hester Peirce. The project would allow firms to test new products across jurisdictions, facilitating regulatory alignment and cross-market innovation.

For the UK to be a world leader in digital assets, international cooperation is vital,

said Chancellor of the Exchequer Rachel Reeves during the Innovate Finance Global Summit. 

The government will now seek industry feedback on the draft legislation, with a finalized regulatory framework expected by the end of 2025.

Read more: Paul Atkins Becomes 34th SEC Chair, Pledges Transparent Crypto Regulation

Regulatory Innovation and EU Response

The draft legislation would bring crypto exchanges, brokers, and agents under a regulatory framework aligned with standards for transparency, consumer protection, and operational resilience. Specifically, crypto platforms would need to comply with risk management disclosures and governance frameworks similar to those applied to conventional financial institutions.

Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,

the Treasury said in a statement.

In January, the UK government amended the Financial Services and Markets Act 2000 to ease regulatory pressure on firms offering staking services. 

The Financial Conduct Authority is expected to release final rules for the crypto sector in 2026. Meanwhile, the European Union began rolling out its Markets in Crypto-Assets (MiCA) framework in December 2024.

Read more: EU Clash: ECB and European Commission at Odds Over Dollar-Pegged Stablecoins

European Central Bank President Francois Villeroy de Galhau expressed concern in early March over the impact of Donald Trump’s deregulatory stance on European markets. He warned that Washington’s support for cryptocurrencies and non-bank financial players could trigger the next financial crisis.