US and UK align on stablecoin rules in 10-point regulatory roadmap
In brief
- US and UK treasuries released joint 10-point roadmap July 14 for stablecoins and tokenized assets
- Payment stablecoins must maintain 1:1 backing by cash and high-quality liquid assets
- GENIUS Act signed July 18, 2025 mandates monthly reserve disclosures and prohibits interest payments
- Full GENIUS Act implementation expected early 2027
- Industry-led working group to test cross-border tokenization projects between jurisdictions
Reserve Requirements and Disclosure Standards
Payment stablecoins should be backed 1:1 by cash and high-quality liquid assets according to the joint alignment. This core principle underpins both regulatory regimes and reflects lessons learned from past stablecoin collapses. The framework is deliberately issuer-agnostic, setting ground rules that any compliant stablecoin could meet — no specific stablecoins like USDC or USDT were named in the announcements.
The GENIUS Act was signed into law on July 18, 2025, establishing a federal regulatory structure for payment stablecoins in the US. The legislation mandates 1:1 reserve requirements in cash and high-quality assets, monthly public disclosures of reserve compositions, and a prohibition on paying interest to stablecoin holders. These mandates should eliminate the kind of opacity that led to past stablecoin failures. Full implementation is anticipated in early 2027.
The interest-payment prohibition could limit how stablecoins compete with traditional bank deposits or money market funds. That's a deliberate trade-off — regulators prioritize stability over yield.
UK Framework and Cross-Border Testing
In April 2026, British regulators proposed a single payments framework designed to cover both stablecoins and tokenized deposits. The Financial Conduct Authority and the Bank of England sought public input on wholesale market tokenization in May 2026, with plans to finalize rules by the end of 2026.
The joint roadmap calls for a new industry-led working group to test cross-border tokenization projects between US and UK jurisdictions. This collaborative approach reflects both governments' commitment to fostering innovation without sacrificing oversight. The alignment signals that major financial regulators are moving toward interoperable standards rather than fragmented rules — a shift that could reshape how digital assets move across borders.
Tokenization and stablecoin regulation remain unsettled in most other jurisdictions, making this transatlantic alignment a potential template for global coordination.
