U.S. and U.K. taskforce issues stablecoin roadmap

On Tuesday, the U.S. and U.K. Transatlantic Taskforce on the Markets of the Future published a joint roadmap urging clear regulatory rules for regulated stablecoins, including custody standards, reserve claims and consumer protections. The guidance calls for consistent approaches to tokenized assets and aims to support competition and innovation in digital asset markets.

The joint statement was issued by the U.S. Department of the Treasury and HM Treasury as part of a bilateral effort created last year to deepen cooperation and reduce market fragmentation between the two financial centers. The taskforce directed the Bank of England, the U.K. Financial Conduct Authority, the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission to develop frameworks for tokenized assets and to explore ways to facilitate cross-border capital raising.

Recommendations focus on regulated stablecoins, tokenized deposits and similar instruments. They emphasize standards for custody practices, segregation of reserves and protections for consumers. The governments seek legal clarity for stablecoin holders in cases of insolvency or restructuring, proposing that holders have a protected claim on reserves with priority ahead of other creditors, consistent with each jurisdiction’s law.

The roadmap was published as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act, marks its first anniversary. The GENIUS Act requires stablecoins to be fully backed by U.S. dollars or similarly liquid assets, mandates annual audits for issuers with market capitalizations above $50 billion, and establishes guidelines for foreign issuance. Federal agencies are drafting rule proposals to implement the law’s provisions.

At a House Financial Services Committee hearing on Tuesday, Federal Reserve Chair Kevin Warsh was asked about the central bank’s progress on rulemaking and an approaching July 18 compliance deadline. Warsh told lawmakers, “We’re racing to put that out by this deadline.”

The taskforce recommended regulators consider technical rulemaking and coordination on oversight of custody arrangements, verification of reserves and legal recognition of holder claims. Regulators in both countries will now assess next steps, including the scope of rules and how cross-border supervision will be coordinated.