The United States and the United Kingdom have unveiled a plan to facilitate the movement of tokenized financial products between their markets, indicating that both governments want blockchain-based finance to become a larger part of major capital markets.
Released on Tuesday by the US Treasury Department and HM Treasury, the Transatlantic Future Markets Task Force’s recommendations focus on reducing regulatory friction that could slow the growth of tokenized securities, stablecoins and other digital assets operating in both countries.
The report sets out 10 recommendations covering digital assets and traditional capital markets.
On the digital assets side, governments propose creating an industry-led working group to test cross-border tokenization projects, coordinate the regulation of tokenized securities, and support the development of cross-border stablecoins. They also want to review global banking standards for crypto assets and build policy frameworks that allow stablecoins, tokenized bank deposits, and other forms of digital money to coexist.
The two governments also issued a joint statement supporting cross-border stablecoin activity, stating that the private sector will play a central role in the development of digital money and payment systems.
