The United Kingdom is moving to align more closely with the United States on cryptocurrency policy, in what could mark a dramatic shift toward a more open stance on digital assets. UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent recently met to discuss a new framework for cooperation, with talks involving major crypto players such as Coinbase, Circle, and Ripple, as well as banking giants including Bank of America, Barclays, and Citi.

The discussions came after strong lobbying from UK crypto advocacy groups, who warned that the country’s cautious approach is stifling innovation. Many see US President Donald Trump’s crypto-friendly policies, particularly around stablecoins, as key to unlocking wider adoption and attracting investment. A deal between the two nations is expected to cover stablecoins, with both sides exploring ways to encourage cross-border growth in digital assets.

The Bank of England has faced pushback after proposing strict limits on individual stablecoin holdings, ranging from £10,000 ($13,650) to £20,000 ($27,300). Critics argue the rules would be costly and impractical. UK banks have also slowed adoption, with nearly 40% of surveyed crypto investors reporting that payments to crypto providers were blocked or delayed.

Still, the government has made progress. In May, the UK proposed a regulatory framework that would treat exchanges and brokers like traditional financial firms, emphasizing transparency and consumer protection. Officials say cooperation with the US will also include digital securities sandboxes, allowing companies to test blockchain applications in finance.

Public interest remains strong. A survey by insurer Aviva found that 27% of UK adults would consider adding crypto to retirement savings, with one in five citizens already having owned digital assets. Advocates argue that aligning with Washington could unlock billions in new opportunities and place Britain back at the forefront of global crypto innovation.