US Treasury and HM Treasury order 1:1 reserves in new 10-point stablecoin roadmap

The U.S. Department of the Treasury and the UK’s HM Treasury released a 10-point roadmap on July 14 requiring stablecoins marketed as money to hold reserves of at least 1:1 in high-quality liquid assets, the most concrete output yet from the Transatlantic Taskforce for Markets of the Future.

The proposals seek to align regulatory principles governing stablecoins, tokenized financial assets, and digital settlement infrastructure without requiring either country to adopt identical laws.

Common principles aim to reduce regulatory barriers

Rather than pursuing identical legislation, the UK and US agreed to develop what they described as “comparable outcomes for comparable risks and activities.”

The objective is to make it easier for regulated stablecoin issuers and digital asset firms to operate across both jurisdictions while allowing each country to preserve its own legal framework.

According to the joint statement, regulators intend to eliminate unnecessary differences that could hinder cross-border payments, settlements, and capital market activities without compromising financial stability or consumer protection.

The statement also emphasizes that future regulations should avoid imposing compliance costs that are disproportionate to the risks involved or creating unnecessary obstacles for new market entrants.

“The UK and US should pursue comparable regulatory outcomes for comparable risks and activities while respecting each jurisdiction’s legislative framework.”

Transatlantic Taskforce for Markets of the Future, Joint UK-US Statement

The announcement comes as stablecoin legislation continues to dominate digital asset policy discussions in Washington.

While the United States advances implementation of the GENIUS Act, UK regulators are simultaneously refining their own framework for digital payments and tokenized finance.

Stablecoin reserves remain central to the framework

One of the clearest policy positions outlined in the recommendations concerns reserve management.

The two governments agreed that stablecoins marketed as money should maintain at least 1:1 backing using high-quality liquid assets, although each jurisdiction will determine which assets qualify under domestic law.

The recommendations also call for issuers to segregate customer reserve assets from corporate funds, provide timely redemption mechanisms, and clearly disclose users’ legal rights.

Perhaps most notably, the framework recommends that stablecoin holders should have protected claims over reserve assets if an issuer becomes insolvent, including priority over other creditors where national laws permit.

These principles closely mirror the broader direction of U.S. stablecoin policy following passage of the GENIUS Act and reinforce growing international consensus around fully reserved payment stablecoins.

Cross-border market access moves closer

Beyond reserve requirements, the agreement explores mechanisms that could eventually allow stablecoins regulated in either country to gain access to customers and financial markets across both jurisdictions.

While the statement stops short of granting automatic mutual recognition, it commits regulators to examining legal pathways that could simplify cross-border operations for compliant issuers.

Officials also endorsed fair, risk-based access to banking services for regulated digital asset businesses—an issue that has remained a longstanding challenge for many crypto firms.

The recommendations further acknowledge that stablecoins could serve as settlement assets within securities and commodities markets, provided firms satisfy applicable safeguards and regulatory standards.

“Stablecoins have the potential to support payments, settlement and capital market transactions when appropriate safeguards are in place.” —Joint UK-US Statement

For institutional investors, this signals growing acceptance that regulated stablecoins may become part of mainstream financial infrastructure rather than remaining confined to cryptocurrency trading.

Tokenization becomes the next phase of cooperation

The stablecoin initiative forms only one component of a broader strategy focused on tokenized financial markets.

Under the taskforce’s recommendations, both governments plan to collaborate with private-sector participants over the next year to test cross-border applications for tokenized assets.

The initiative will involve cooperation among the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), the UK Financial Conduct Authority (FCA), and the Bank of England.

Areas under consideration include tokenized securities settlement, digital collateral management, and the potential use of regulated stablecoins or tokenized money market funds within clearing systems.

Although the recommendations do not establish binding legal obligations, they represent a coordinated effort by two major financial jurisdictions to reduce regulatory fragmentation while supporting innovation in digital finance.

As tokenization continues to attract investment from banks, asset managers, and payment providers worldwide, closer UK-US regulatory alignment could accelerate institutional participation and establish a blueprint for broader international cooperation.