In a landmark move reflecting the surging prominence of digital assets in 2025, the United Kingdom and the United States have announced plans to collaborate closely to foster the responsible adoption and regulation of cryptocurrencies. UK Finance Minister Rachel Reeves revealed on Tuesday that the UK is drafting comprehensive legislation aimed at regulating crypto assets, signaling a strategic effort to establish the nation as a global leader in digital finance.
At a major fintech summit, Reeves outlined the UK government’s intention to implement a robust regulatory framework that will bring crypto exchanges, dealers, and intermediaries under clear regulatory oversight, akin to traditional financial institutions. This framework is designed to protect consumers by enhancing transparency, operational resilience, and consumer safeguards, while simultaneously cracking down on illicit actors and fostering legitimate innovation within the sector.
Reeves emphasized the critical role of international cooperation in achieving these goals, highlighting ongoing discussions with US counterparts, including Treasury Secretary Scott Bessent. The two countries are exploring mechanisms such as a transatlantic regulatory sandbox, championed by US SEC Commissioner Hester Peirce, to enable cross-border collaboration on compliant digital securities and other crypto innovations.
This transatlantic partnership comes amid a significant rise in cryptocurrency adoption, with UK crypto ownership tripling from 4% in 2021 to 12% in 2024, reflecting a broader global trend. The UK government’s draft legislation aims to balance consumer protection with maintaining an attractive environment for fintech growth and investment.
The US, under President Trump’s administration, is also advancing a more crypto-friendly regulatory stance, softening previous warnings and clarifying the role of regulated financial institutions in holding digital assets. This alignment in regulatory philosophy between the UK and US is set to culminate in groundbreaking standards that could accelerate the mainstream integration of cryptocurrencies on both sides of the Atlantic.
Reeves stated, “For the UK to be a world leader in digital assets, international cooperation is vital,” underscoring the importance of this bilateral effort to shape the future of digital finance responsibly and sustainably.
The UK government plans to finalize and enact the new crypto regulations later this year, following consultations with industry stakeholders. This initiative is part of a broader “Plan for Change” agenda aimed at making Britain the safest and most innovative hub for digital assets worldwide.
