US and UK eye near and long-term collaboration on crypto, capital markets
- The United States and the United Kingdom will establish the Transatlantic Task Force to boost collaboration in digital assets and capital markets.
- The initiative aims to deepen collaboration on digital assets amid regulatory developments.
- The task force, announced following President Trump's UK visit, is expected to report back within 180 days.
The United States (US) and the United Kingdom (UK) have agreed to establish a joint task force to enhance cooperation on cryptocurrencies and capital markets.
US, UK launch task force to enhance crypto and capital markets cooperation
The Transatlantic Taskforce for Markets of the Future, formed following a strategic meeting between the Chancellor of the Exchequer, Rachel Reeves, and US Treasury Secretary, Scott Bessent, will explore less burdensome ways for firms to raise capital across borders.
According to a statement released by the UK government on Monday, the task force's purpose is to explore options for short- to medium-term collaboration on cryptocurrency assets amid ongoing regulatory developments in both countries. This mandate also extends to long-term cooperation on emerging opportunities and innovation within digital markets.
In addition to collaborating on digital assets, the task force is expected to enhance symbiotic links between the US and UK capital markets, ensuring improved growth and competitiveness on the global stage.
The Transatlantic Taskforce for Markets of the Future, chaired by officials from the US Treasury and HM Treasury, is expected to submit a report in 180 days. Regulators from both the US and the UK will be represented in the task force, which has also been requested to seek expertise from industry leaders to ensure the core focus remains on what matters most to the two industries.
US President Donald Trump was in the UK last week for a state visit, setting the stage for strategic discussions between key government institutions from both sides.
Since President Trump took office in January, the US has shifted its approach to cryptocurrencies by promoting the development of clear regulations that foster innovation while protecting customers.
The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) was signed by President Trump in July, establishing a comprehensive regulatory framework for stablecoins.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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