US and UK Financial Regulators Discuss Effective Crypto Oversight

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The U.S. and U.K. Financial Regulatory Working Group has emphasized the importance of effective regulation and oversight of crypto assets and markets. They also reiterated their support for the international work on crypto assets.

US-UK Financial Regulatory Working Group Discusses Crypto Regulation

The U.S.-U.K. Financial Regulatory Working Group (FRWG) convened in London for its ninth official meeting on Jan. 31 and issued a statement summarizing their discussions on Feb. 5. Key topics discussed by the group included crypto regulation and central bank digital currencies (CBDCs).

Participants included officials from HM Treasury, the U.S. Department of the Treasury, the Bank of England, the Financial Conduct Authority (FCA), the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC).

“Representatives offered updates about recent developments in crypto-asset markets and discussed international engagement within the sector,” the statement details, adding:

Participants noted the importance of effective regulation and oversight of crypto assets and markets and reiterated their support for the international work on crypto assets.

The working group was formed in 2018 to deepen bilateral regulatory cooperation with a view to the further promotion of financial stability; investor protection; fair, orderly, and efficient markets; and capital formation in both jurisdictions.

The statement adds that participants also discussed the publications of the Financial Stability Board (FSB)’s “high-level recommendations to promote consistency, given the cross-border nature of crypto-asset activities.” They also discussed the importance of these recommendations “as jurisdictions implement their own frameworks, consistent with the FSB recommendations to avoid potential regulatory arbitrage.”

Moreover, the Working Group “discussed recent developments in their respective work on central bank digital currency (CBDC), and U.K. authorities provided an overview of the findings of their recent public consultation on a digital pound,” the group noted.

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