The Chancellor of the Exchequer, Rachel Reeves, and U.S. Treasury Secretary Scott Bessent met in London last week to discuss ways to strengthen cooperation between the United Kingdom and United States financial sectors. The meeting included a joint industry roundtable at Downing Street where both leaders emphasized the ongoing partnership between the two countries’ financial centers.
To build on this relationship amid ongoing technological changes in finance, Reeves and Bessent announced the creation of a Transatlantic Taskforce for Markets of the Future. This new group will be responsible for making recommendations to both countries' finance ministries through the UK-U.S. Financial Regulatory Working Group (FRWG). The aim is to increase collaboration on capital markets, digital assets, and other innovative areas within financial services.
According to the announcement, “The Taskforce is to report back to both finance ministries, via the UK-U.S. Financial Regulatory Working Group (‘FRWG’), on recommendations to enhance collaboration on capital markets and digital assets and other innovative financial activities. These recommendations are to be developed in close collaboration with industry partners ensuring we unlock opportunities for investors, businesses, and market participants on both sides of the Atlantic.”
The scope of work for the taskforce includes identifying short- and medium-term opportunities for cooperation around digital assets as regulatory frameworks continue to develop. It will also look at long-term strategies for innovation in wholesale digital markets and explore ways to improve connections between UK and U.S. capital markets so that cross-border capital raising becomes easier for firms.
As stated in the release: “Options for short-to-medium term collaboration on digital assets while legislation and regulatory regimes are still developing, as well as options for long-term collaboration and additional opportunities for wholesale digital markets innovation.” Additionally, it aims to identify “options to improve links between our capital markets to enhance the growth and competitiveness of both UK and U.S. markets, focusing on reducing burdens for UK and U.S. firms raising capital cross-border.”
The taskforce will be chaired by officials from HM Treasury and U.S. Treasury with participation from regulators overseeing capital markets and digital asset regulation from both countries as appropriate.
Industry input will play a significant role in shaping its recommendations: “The Taskforce should seek input from leading industry experts to ensure that its recommendations are informed by what matters most to industry.”
A final report is expected within 180 days.
