Britain and America must shape the rules for digital assets together
Digital assets are not just a fintech trend, they are changing how value is created, exchanged and settled in the global economy, says Lord Kulveer Ranger
The race to shape the rules for digital assets is no longer theoretical — it is already underway, and it is moving fast. Across the world, governments are beginning to recognise that digital assets, tokenised markets and programmable money are not simply another fintech trend. They represent a structural shift in how value is created, exchanged and settled in the global economy. The real question now is not whether this transformation will happen. It is where it will happen — and who will shape the rules.
When I travel to Washington next week to speak at the DC Blockchain Summit and meet policymakers and regulators, one thing will be clear: the United States understands the strategic importance of this moment. From discussions on Capitol Hill to debates within the U.S. Securities and Exchange Commission, American policymakers are actively grappling with how to regulate digital assets, stablecoins and tokenised markets. And the world is paying attention. Digital assets may be borderless technologies, but regulatory leadership still matters. Markets gravitate toward jurisdictions that provide clarity, credibility and scale. That is why the United Kingdom must move decisively if we want to remain one of the world’s leading financial centres.
London’s success as a global financial centre has always been built on a willingness to adapt to change — from the development of the Eurobond markets in the 1960s to the financial reforms of the Big Bang that helped establish the City as a global hub for international capital in the 1980s. The digital asset era should be no different. Encouragingly, policymakers and regulators in the UK are already engaging seriously with these questions. Work by HM Treasury, the Financial Conduct Authority and the Bank of England, alongside Parliamentary scrutiny through the House of Lords Financial Services Regulation Committee, is helping to shape the UK’s emerging framework for digital assets and stablecoins. The APPG on Digital Markets and Digital Money, which I co-chair, has also been engaging with industry, academics and regulators to explore how these technologies could reshape financial markets.
But if there is one lesson to already learn from Washington, it is this: no country can navigate this transformation alone. The United States has the scale, the capital markets and the political momentum. The United Kingdom has the regulatory tradition, the international networks and the time zone. Together, they remain the two most influential financial centres in the world — and together, they helped build the architecture of modern global finance. The opportunity now is to shape its digital successor.
Race to shape the future
Digital assets are global by design. Capital moves quickly, technology evolves rapidly, and innovation flows easily across borders. That is precisely why closer cooperation between our two countries is not just desirable — it is strategically necessary. One response to that need is the recently established UK–US Digital Assets Alliance, which brings together policymakers, regulators, entrepreneurs and investors across both countries to strengthen dialogue and help ensure that innovation is matched by responsible regulation. As its incoming President, I believe this kind of structured engagement between our two nations is long overdue — and there are several practical steps we could take to give it real substance.
A cross-border regulatory sandbox could allow firms to test digital asset innovations simultaneously in both markets. Regular policy dialogue between regulators could help align emerging frameworks. And stronger engagement between legislators on both sides of the Atlantic could ensure that policymakers remain informed about rapidly evolving technologies.
The stakes are significant. Digital assets are transforming capital markets, reshaping payments, and unlocking entirely new forms of economic activity. Tokenisation alone could fundamentally change how assets are issued, traded and settled. But as with every technological shift, leadership will determine where the benefits accrue. If Britain moves quickly, collaborates internationally and builds on the history and strengths of Canada, we can remain at the forefront of this new financial era. If we hesitate, others will move ahead.
The race to shape the future of digital finance has already begun. Britain must ensure it is running alongside America — not watching from the sidelines.