U.S. and UK Collaborate on Stablecoin Regulation to Enhance Financial Stability
The U.S. Department of the Treasury and UK financial regulatory bodies have expanded their cooperation to establish comparable standards for stablecoins and digital assets. During a meeting of the U.S.-UK Financial Regulatory Working Group, both sides discussed the implementation of the GENIUS Act, which aims to regulate stablecoins by requiring them to be backed by high-quality liquid assets. The Federal Deposit Insurance Corporation has proposed standards for reserves, redemption, capital, liquidity, risk management, custody, and safekeeping under the GENIUS Act. The UK presented its digital strategy for wholesale financial markets, including a draft rule for stablecoins that could achieve systemic scale in the UK economy. 
