Svmuu News: The British and U.S. governments have issued a joint position on stablecoins through the Transatlantic Working Group on Future Markets, expressing support for coordinated rules regarding reserves, redemption, market access, and cross-border use.
The two governments stated that, if properly regulated, stablecoins can improve payments, settlements, and financial market infrastructure, and they support the development of private digital currencies under public sector oversight.
The UK and the U.S. stated that stablecoins used as currency should be fully backed by high-quality liquid assets at a ratio of at least 1:1, with reserve assets segregated from the issuer’s own funds, and that standards for custody, redemption, and disclosure of legal rights should be provided to holders.
The two countries also stated that they would explore pathways for stablecoins issued in one country to enter the other’s market and support legitimate, regulated stablecoin and digital asset providers in gaining fair, risk-based access to financial services and markets.