Emma RadmoreThe Transatlantic Taskforce for Markets of the Future has made recommendations on how the UK and US can collaborate further on digital assets and capital markets.
On digital assets, the recommendations are:
- to engage a private sector-led group to spend a year experimenting and testing cross-border use cases for tokenised assets;
- all relevant authorities to seek to set a common approach to regulatory treatment of tokenised assets;
- to develop and publish a joint statement on stablecoins;
- the set robust policy frameworks for digital financial services, so digital products can co-exist as part of a multi-money ecosystem;
- to support the Basel review of standards.
On capital markets, the recommendations are:
- for the FCA and SEC to explore options to facilitate cross-border capital raising;
- discussing how the UK’s regulatory, disclosure and governance standards should be reflect in the US treatment of UK foreign private issuers;
- exploring collaboration between consolidated tapes;
- considering converting temporary no-action reliefs into something more permanent;
- collaborating on international efforts to maintain accounting and audit quality.
Separately, regulators have afformed their commitment to collaboration on stablecoins, with both the UK and US intending to enable their use in cross-border finance, and want to encourage innovation and competition. They plan a timely, clear and consistent legal, regulatory and supervisory pathway for firms, and confirm that stablecoins held out as money should be fully backed on at least a one-to-one basis by high-quality, liquid assets. Regulatory approaches will promote both innovation and resilience, and will look to integrated well-regulated stablecoins into existing regulation, including setting high standards for segregation and custody of relevant assets.