The rate of adoption of the digital asset sector is increasing in various regions of the world, and more countries are stepping up efforts to regulate the industry. US and UK authorities have decided to exchange personnel to collaborate on drafting cryptocurrency regulations. The effort will involve collaboration between the New York Department of Financial Services (DFS) and the Bank of England (BOE). The two companies have agreed to exchange senior personnel skilled in managing areas such as digital assets and emerging payments.
The Transatlantic Regulated Exchange (TRE) initiative was announced by DFS Superintendent Adrian A. Harris on January 13th. At the launch, Harris said the program will allow DFS and BOE to share regulatory approaches and information needed to clarify the legal framework governing digital assets like cryptocurrencies.
How a transatlantic regulated exchange works
The purpose of TRE is to bring New York and London together regarding cooperation to strengthen the regulatory framework related to the crypto sector. Harris said the partnership will ensure that critical financial services are no longer defined by geographic limitations.
DFS internal candidates had the opportunity to participate in this program. They needed to demonstrate expertise in understanding blockchain, digital payments, cryptocurrencies and digital assets.
The first TRE secondment will begin in February and last a minimum of six months. It can be extended for up to one year if both DFS and BOE agree. Appointed personnel are expected to return to their respective countries with greater insight and knowledge about digital assets and Web3.
Commenting on the initiative, Sarah Breeden, BOE Vice President for Financial Stability, said: “By sharing knowledge and learning from each other, regulation can improve global financial stability and secure innovation in payments and financial markets. “We can provide more reliable support.”
The final results of this effort are expected to be known between August 2025 and February 2026.
UK and US positions on digital asset regulation
Both the US and UK currently lack a comprehensive set of policies to oversee the digital asset sector. Without clear rules, assets like Bitcoin can be misused by bad actors to facilitate illegal activities such as money laundering and terrorist financing. Additionally, the lack of regulation puts investors large and small involved in notoriously volatile digital assets at risk.
The UK has made some progress in tackling certain parts of the digital asset industry under Rishi Sunak, who served as UK Chancellor of the Exchequer and Prime Minister. From recognizing stablecoins as a valid payment option to creating official NFTs, the UK has gained experience working with digital assets.
Meanwhile, the United States imposes taxes on the digital asset sector while requiring compliance with anti-money laundering laws as part of ongoing regulatory efforts. The next US President, Donald Trump, will be inaugurated on January 20th, and it is expected that there will be rapid progress regarding virtual currency regulation in the US. Trump said during his campaign that he would make Bitcoin a reserve asset.
Although the UK has been somewhat conservative in its public marketing around cryptocurrencies, companies like the AMC movie theater chain have actively encouraged customers to experiment with crypto payments in the past.
According to reports, President Trump is expected to issue an executive order related to the crypto sector on his first day as US president, marking the beginning of a new chapter for digital assets in the US. Meanwhile, the UK could finalize cryptocurrency regulations by 2026.
