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US and UK treasuries issue stablecoin and tokenization recommendations
The guidance calls for stablecoins to be fully backed on at least a one-to-one basis with high-quality, liquid assets, aligning with a US stablecoin law due for regulatory rollout in 2027.
The US Department of the Treasury and the UK Treasury (HM Treasury) have released joint recommendations on how authorities should handle tokenization and stablecoin activity as the United States moves toward implementing its 2025 payment stablecoin law, Cointelegraph reported.
In a statement released Tuesday, the two treasuries laid out four recommendations under the Transatlantic Taskforce for the Markets of the Future, including encouraging a private-sector-led group to test cross-border use cases for tokenized assets and asking US regulators and the Bank of England to identify shared approaches for regulating tokenized assets.
The statement said each government intends to tailor its requirements to pursue comparable outcomes for comparable risks, aiming to support financial stability while avoiding market distortions or discouraging cross-border competition.
Cointelegraph added that the recommendations align with the US GENIUS Act, which requires stablecoins to be fully backed on at least a one-to-one basis with high-quality, liquid assets, and that the UK government-backed industry task force also called for issuing tokenized bonds by the first quarter of 2027 and testing blockchain-based financial transactions.