UK and US Agree on Stablecoin Rules for Cross-Border Finance Ahead of CLARITY Act

The UK and United States are moving closer on stablecoin rules as Washington races to pass the CLARITY Act before recess. The joint position supports cross-border payments, protected reserves, and clearer market access, while banks warn weak language could shift deposits into digital money and further pressure smaller regional lenders nationwide.

UK and US Back Stablecoins for Cross-Border Finance

The two governments said well-regulated stablecoins can support faster payments, stronger competition, and modern financial market systems. The joint position was issued through the Transatlantic Taskforce for Markets of the Future, which was established in September 2025.

The UK and US described stablecoins as “an important vehicle for innovation in digital money.” Both governments said they intend to support their use in cross-border finance, including payments, settlement, and capital market transactions.

The shared position aims to give companies clearer rules as both countries develop domestic stablecoin regimes. Both governments said cooperation should help avoid market fragmentation while supporting safe digital financial innovation.

Stablecoin Reserves and Holder Protections Take Focus

The UK and US said stablecoins used as money should be fully backed on at least a one-to-one basis. They said eligible reserves should include high-quality and liquid assets that are clearly defined under each country’s rules.

Both governments also said reserve and liquidity standards should reduce risks without creating unfair barriers to entry. They plan to avoid requirements that are too heavy for the level of risk or that weaken cross-border competition.

The framework also focuses on custody, reserve segregation, and timely redemption for stablecoin holders. Issuers of regulated stablecoins should clearly disclose holder rights and keep reserve assets separate from company funds.

In any insolvency or restructuring process, both governments support clear legal claims on reserves. Stablecoin holders should have protected claims ahead of other creditors, subject to each country’s laws.

CLARITY Act Faces Deadline as Trump Pushes Senate Vote

The stablecoin agreement comes as President Donald Trump again urged the Senate to pass the CLARITY Act. The president has pushed for faster crypto legislation as part of his goal to make the US the “crypto capital of the world.”

The bill remains one of the main crypto market events this week, as the Senate faces a tight deadline before its August recess. Lawmakers are still working through market structure language, stablecoin rules, and ethics provisions tied to elected officials.

Banking groups have also raised concerns over stablecoin provisions in the CLARITY Act. As we reported, these groups warned that the CLARITY bill still leaves loopholes in stablecoin regulation.

The banks argue that the current language is “too ambiguous” and could push users away from bank deposits toward stablecoins. Those concerns have increased pressure for clearer safeguards, especially for community banks worried about deposit flight.

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