UK and US Unite to Streamline Markets and Crypto Rules

22 September 2025

gopixa Credit: Getty Images

Britain and the United States are launching a new joint initiative to ease access to capital markets and harmonise the regulation of digital assets. The partnership was officially announced on September 22 by both governments who revealed that they will establish a body called the Transatlantic Taskforce for Markets of the Future. The taskforce will include officials from the UK Treasury and the US Treasury alongside regulators from both countries. Their mission is to identify ways to reduce regulatory friction for firms operating across the Atlantic and to collaborate more closely on matters related to cryptocurrency and digital markets.

The taskforce was approved in coordination with British Finance Minister Rachel Reeves and U.S. Treasury Secretary Scott Bessent during a state visit by President Donald Trump to Britain. It will meet and report back on short-term improvement measures within the next 180 days while also laying groundwork for more permanent alignment in areas such as wholesale digital markets.

One of the key drivers behind the effort is Britain’s struggle to maintain its influence in global finance in the wake of Brexit. Since leaving the European Union, many companies have shifted their primary stock market listings to the U.S. citing lighter burdens or more favourable access. The UK is eager to restore competitiveness and sees regulatory alignment with the U.S. as a pathway in that direction.

On the crypto side, the UK intends to use its existing regulatory framework rather than drafting new, separate rules as the European Union has done. Working in tandem with U.S. counterparts, Britain hopes to create clarity for digital assets markets and reduce the uncertainty that has often discouraged investment or innovation in this sector.

Officials on both sides acknowledge that differences in regulation, standards, legal definitions and enforcement have made cross-border operations difficult for financial firms, particularly those involved in fintech and digital financial services. The taskforce aims to uncover concrete ways to smooth those differences and build a foundation for cooperation that might include shared regulatory standards or streamlined approval processes.

The formation of this taskforce reflects wider geopolitical and economic tactics. As global financial competition increases, countries are under pressure to make their markets more attractive to capital inflows. By cooperating, the UK and the US hope not only to benefit their own industries but also to set international benchmarks. Firms that straddle both jurisdictions often face duplication of compliance, delays, and conflicting rules. Reducing that complexity could lead to increased investment, faster innovation, and more efficient use of capital.

There are challenges ahead. Harmonising regulation is never simple. Legal systems differ, regulatory philosophies diverge, and political pressure from various constituencies can complicate reforms. Digital assets in particular are a lightning rod issue. Some U.S. regulators have taken stringent stances while British regulators have so far preferred lighter touch regulation or incremental reform. Aligning those approaches without sacrificing investor protection will require compromise and coordination.

Stakeholders in financial services welcomed the announcement. For them the promise of smoother access, less duplication of paperwork and clearer rules for crypto assets is a positive signal. It suggests that despite global uncertainty over regulation, governments are beginning to prioritize efficient frameworks that support innovation while maintaining oversight. For firms working in cross-border markets this may reduce some of the friction that has impeded growth.

The taskforce will produce its first report within half a year outlining actions that can be taken quickly to reduce regulatory barriers. Meanwhile longer term work will centre on aligning more fundamental aspects of the regulatory systems including market access, definitions and oversight for digital and wholesale markets. If successful this cooperation could reshape how capital flows across the Atlantic and how digital assets are regulated in two of the world’s largest financial markets.