Woofun AI reports that the UK and US governments, via the Future Markets Cross-Atlantic Working Group, have released a joint position on stablecoin regulation. The agreement supports coordinated rules regarding reserves, redemption mechanisms, market access, and cross-border utilization. Officials stated that properly regulated stablecoins can enhance payments, settlement systems, and financial market infrastructure while fostering private digital currency development under public oversight.

The joint statement mandates that stablecoins functioning as currency must be fully backed by high-quality liquid assets at a minimum 1:1 ratio. Reserve assets must remain segregated from issuer funds, with clear disclosure standards for custody, redemption, and holder legal rights.

Additionally, both nations will explore pathways for stablecoins issued in one jurisdiction to access the other’s market, supporting fair, risk-based entry for legitimate, regulated providers.