As the adoption of the digital asset industry rises around the world, more and more countries are stepping up efforts to regulate the industry. Authorities from the United States and the United Kingdom have decided to exchange human resources to collaborate on drafting crypto regulations. The initiative will bring the Department of Financial Services (DFS) and the Bank of England (BOE) together. The two entities have agreed to exchange senior staff officials to skillfully manage areas such as digital assets and emerging payments.
DFS head Adrienne A. Harris announced the “Transatlantic Regulatory Exchange (TRE)” initiative on January 13. Harris said during the release process that the plan allows DFS and BOE to share regulatory approaches and information to paint the legal framework to manage digital assets such as cryptocurrencies.
How transatlantic regulatory exchanges work
The TRE aims to connect collaboration between New York and London to strengthen regulatory frameworks related to the cryptocurrency sector. Harris believes the collaboration will ensure that critical financial services are no longer defined by geographical restrictions.
DFS’s internal candidates have the opportunity to be part of the program. They must demonstrate their expertise in understanding blockchain, digital payments, virtual currencies and digital assets.
The first TRE secondment will begin in February and last for at least six months. If both agree, it can be extended to one year. The appointed officials are expected to return to their respective countries through insights and knowledge about digital assets and Web3.
“By sharing our knowledge and learning, we can better ensure that regulations support global financial stability and security innovation in payments and financial markets,” BOE Deputy Governor Sarah Breeden commented on the program express.
The final results of the program are expected to be revealed between August 2025 and February 2026.
UK and US stand in the digital asset regulations
At present, neither the United States nor the United Kingdom have a comprehensive set of policies to oversee the digital asset industry. In the absence of clear provisions, bad actors may abuse assets like Bitcoin to promote illegal activities such as money laundering and terrorist financing. Furthermore, the lack of regulations is at risk for small and large investors who interact with infamous digital assets.
The UK has made some progress in addressing specific parts of the digital asset industry under Rishi Sunak, who served as the British Finance Minister and his prime minister. From identifying Stablecoins as an effective payment method to creating a formal NFT, the UK has gained some experience working with digital assets.
On the other hand, the U.S. is levied on the digital asset sector while compulsing compliance with anti-money laundering laws, which is part of the ongoing regulatory efforts. US President-elect Donald Trump will be sworn in on January 20, and the United States is expected to develop rapidly around crypto regulations. Trump said during the campaign that he would make Bitcoin a reserve.
The UK has remained more conservative in crypto-related public marketing, and entities like AMC Cinema Hall Chain have actively prompted customers to try to pay in cryptocurrency.
Trump is reportedly expected to issue execution orders related to the cryptocurrency sector on the first day of the U.S. president, the beginning of a new chapter in U.S. digital assets. Meanwhile, the UK can complete its encryption regulations in 2026.
