TL;DR
- UK trade organizations are urging the government to include blockchain technology in bilateral agreements with the US, emphasizing digital assets, tokenization, and stablecoins.
- They warn that excluding crypto from the UK-US Tech Bridge could leave Britain behind other global players.
- The groups stress that coordinated regulation is crucial for market access, transatlantic partnerships, and strengthening the UK’s position as a hub for financial innovation and crypto adoption.
UK trade associations are calling on the government to prioritize blockchain technology in upcoming discussions with the United States, just ahead of President Donald Trump’s planned visit next week. The push comes from more than a dozen groups representing finance, technology, and crypto sectors, who view distributed ledger technology as essential for maintaining the UK’s competitive edge in digital finance.
Lobby Groups Highlight Importance Of Tokenization And Stablecoins
In a letter addressed to UK Business Secretary Peter Kyle, the organizations argued that digital assets should be a central component of what they describe as the “UK-US Tech Bridge.” The letter also reached Economic Secretary to the Treasury Lucy Rigby, who oversees the government’s approach to cryptocurrency. Signatories included the UK Cryptoasset Business Council, UK Finance, and TheCityUK, emphasizing that excluding digital assets would risk Britain falling behind regions such as Asia and the Middle East in shaping future financial standards.
The groups highlighted tokenization—the process of representing assets like stocks, bonds, or deposits on a blockchain ledger—and stablecoins, which are typically pegged to a fiat currency and backed by liquid reserves. These technologies are gaining traction after recent US legislation regulating stablecoins, and the groups argue they could foster strong transatlantic partnerships if incorporated into trade agreements.
UK Seeks To Strengthen Its Crypto Innovation Position
The government has already expressed interest in digital finance, with former Prime Minister Rishi Sunak previously pledging to turn the UK into a global crypto hub. However, the country still lacks comprehensive industry regulations, leaving it behind the US, the EU, and parts of Asia and the Middle East. The Financial Conduct Authority is currently consulting on a regulatory framework to cover stablecoins, tokenization, and crypto trading, with licenses expected to open next year.
Government officials note that the UK and US are already aligned on major tech areas like AI, quantum computing, and cybersecurity, and the lobby groups argue that including blockchain would strengthen this partnership. Coordinated action, they say, will help UK firms navigate regulatory environments, access deep transatlantic markets, and maintain a leadership role in financial innovation as crypto adoption expands worldwide.
