Transatlantic Task Force for Future Markets: UK – US Crypto Coordination for Capital Markets, Digital Assets and Other Innovative Financial Activities, based on dialogue between major financial centres around the world – US Crypto Coordination. From a process architecture perspective, this is the layer above the UK – US Financial Regulatory Working Group (FRWG). TaskForce will produce recommendations and reports to both Treasury Departments through the FRWG. This is a coordinated proposal that can be quickly integrated into existing forms of cooperation, rather than in the first stage regarding immediate regulatory changes.
Transatlantic Task Force Delegation, Focus and Timeline for Future Markets
Strictly speaking, the main purpose of the task force is to prepare options for short- and medium-term cooperation of digital assets for periods where legislative and regulatory regimes are still in shape, and to propose a long-term direction for innovation in the wholesale digital market. In parallel, the group should present options to improve the connection between the UK and US capital markets for growth and competitiveness. The regulator indicates that the initial report is expected within 180 days.
The group is led by representatives from the HM Treasury and the US Treasury, but other domestic regulators of capital markets and digital assets in both countries are included as needed. In theory, this is not a theoretical declaration, but provides the possibility of practical and operationally applicable proposals, and coordinates existing authority and its implementation procedures in advance for future recommendations.
Predictive mechanism for industry engagement
As regulators have already focused on the task force’s commitment to seeking input from key industry experts, the recommendations reflect what is truly important to businesses and market participants on both sides of the Atlantic. This is especially important for new digital assets and cross-border capital raising. By involving the industry during the design of recommendations, it is more likely that the final proposal will be compatible with the participants’ infrastructure and can be implemented within a reasonable time frame.
Because TaskForce reports through FRWG, the implementation channel appears in two layers. First, coordinate recommendations on interagency platforms. Then, some of them are transferred to regulatory consultations or bilateral control mechanisms. As a result, already in the short term, this could result in a coordinated approach to individual components of market practice.
Conclusion
Initially, we observed how key US regulators strengthened interagency coordination and initiatives. Now this is moving to a level beyond borders. Therefore, the Transatlantic Task Force for Future Markets could provide a broader institutional framework across the world’s Atlantic. Potentially, this is an even more fundamental initiative than we have seen before. Stay tuned for the latest updates and opportunities in the development of the new economy, the cryptocurrency industry and regulations.