UK and US Collaborate on Crypto Regulation Sandbox

According to Cointelegraph, Lisa Cameron, a former United Kingdom Member of Parliament and founder of the UK-US Crypto Alliance, has revealed that a collaborative 'sandbox' between the United States and the United Kingdom is in the works to align their crypto markets. Speaking at the UN City offices in Copenhagen, Denmark, Cameron expressed her organization's belief that this sandbox will emerge from ongoing discussions between the two nations. The UK-US Crypto Alliance is reportedly enthusiastic about this potential development. Cameron explained that the UK-US Crypto Alliance reached this conclusion after engaging with U.S. Senators and members of the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force. She anticipates that the sandbox will address issues related to 'passporting' for crypto licenses between the UK and the US. Many organizations she has spoken to are seeking regulatory clarity that would enable such passporting, which could also benefit the European Union. Crypto regulation is gaining traction in the UK, as evidenced by the Bank of England's recent consultation paper proposing a regulatory framework for stablecoins. This framework aims to regulate sterling-denominated 'systemic stablecoins' used in payments, similar to the US’s GENIUS Act. This development follows reports of a transatlantic task force established by treasury authorities in the US and UK to explore collaboration on digital assets. In September, both countries were reportedly preparing to deepen their cooperation on digital assets, with the UK considering adopting the Trump administration’s crypto-friendly stance. UK trade groups have also urged the government to include blockchain technology in the 'Tech Bridge' collaboration with the United States. Cameron expressed concerns about the UK's urgency in addressing crypto regulation, warning of a 'window of opportunity' that could close if not acted upon swiftly. She noted that crypto regulation is not receiving the political priority it deserves, leading companies to consider relocating to other jurisdictions due to a perceived lack of support in the UK. Cameron emphasized that the assertive policy direction of the US has heightened the need for the UK to act quickly. With the US taking a clear stance on emerging frontier technologies, she believes the UK must respond promptly to remain competitive in the sector.