UK & U.S. Financial Innovation Partnership Meeting on Crypto regulations and CBDCs
Participants from United Kingdom and United States of America met for Financial Innovation Partnership (FIP) meeting on Crypto regulations and CBDCs on 29th June. This is the third regulatory meeting where participants gathered to exchange views on regulations on digital assets.
The FIP’s Regulatory Pillar meet is hosted by Her Majesty’s Treasury with the US Department of Treasury in London. The purpose of the meet is to deepen ties between U.S. and UK Financial authorities on Financial Innovation.
The participants from UK were Bank of England and Financial Conduct Authority. Meanwhile while those representing U.S. were staff from independent regulatory agencies such as the Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Securities and Exchange Commission, and Office of the Comptroller of the Currency.
FIP’s Regulatory Pillar meet is to exchange views on topics of mutual interest regarding digital ecosystem between the two countries. On Wednesday, participants exchanged views on crypto asset regulation and market developments. There was a marked focus on the recent developments in relation to stablecoins and untapped potential of Central Bank Digital Currencies (CBDCs).
UK & U.S. FIP meet on Stablecoins, Crypto Regulations and CBDCs
Both countries discussed stablecoins and regulatory updates in their jurisdictions. Stablecoins have clearly taken over the world. After the crash of a top stablecoin, LUNA, countries are readily applying regulations and stipulations over stablecoins. The recent crash highlighted the importance of cross-border regulations to support safer innovation and outcomes. During the FIP meet, the participants from both countries discussed future opportunities. They exchanged views on the key role of stablecoins and a need for broader crypto asset regulatory initiatives.
Many countries have given a green light to CBDCs however that is not the same in case of U.S. and UK. They are still developing plans, doing policy research and technology exploration on CBDCs. During the meet both countries’ participants provided updates on their approach to CBDCs too.
The success of CBDCs depends on the interoperability of the system and cooperative communication between the countries. U.S. and UK are certainly moving through that route in their quest to develop the crypto ecosystem. The continued partnership on global financial innovation is an integral component of U.S. & UK Financial Services Cooperation.
The next U.S – UK Financial Regulatory Working Group (FRWG) meeting will be held in July this year. FIP was inaugurated in 2019 at FRWG as a means of boosting U.S.-UK engagement in financial innovation issues.
