U.S. Regulator Advocates for Crypto Passporting with UK Ahead of Resignation

A senior U.S. financial regulator has called for the implementation of “crypto passporting” arrangements with the United Kingdom as she prepares to step down from her role. The proposal envisions a framework enabling digital asset firms to operate across borders under mutual regulatory recognition, streamlining compliance and expanding market access. This initiative highlights growing international collaboration in the cryptocurrency sector, emphasizing the need for harmonized oversight in a rapidly evolving market. The regulator’s final advocacy reflects an effort to foster innovation while maintaining investor protections, signaling a potential turning point in cross-border digital asset regulation.

Concept of Crypto Passporting

Crypto passporting would allow licensed cryptocurrency exchanges and service providers in one jurisdiction to operate in another without obtaining a full, separate license. By recognizing equivalent regulatory standards between the U.S. and UK, firms could expand their reach efficiently while maintaining compliance with investor protection and anti-money laundering (AML) regulations. Advocates argue this could significantly reduce operational friction and encourage international growth for digital asset markets.

Regulatory Context

The U.S. regulator’s call comes amid increasing scrutiny of digital asset markets, where fragmented regulations have posed challenges for cross-border operations. Inconsistent frameworks between jurisdictions can impede investment, innovation, and market liquidity. Passporting arrangements aim to align compliance expectations while fostering transparency, accountability, and consumer trust in cryptocurrency services.

Implications for the Cryptocurrency Industry

Industry analysts suggest that U.S.-UK crypto passporting could accelerate institutional participation in digital assets. Firms would be able to scale operations internationally, attracting more investors and improving liquidity. Furthermore, standardized regulatory oversight could reduce legal uncertainty and operational risk, encouraging long-term investment in both technology and market infrastructure.

International Collaboration and Future Outlook

The regulator’s advocacy underscores the importance of international cooperation in managing risks associated with cryptocurrencies, such as fraud, market manipulation, and money laundering. Analysts expect that such initiatives may serve as a blueprint for broader global agreements, promoting interoperability and consistency in regulatory approaches.

Transition and Legacy

As the regulator steps down, her call for crypto passporting is likely to influence ongoing discussions among policymakers and industry stakeholders. Observers note that her tenure has been marked by balancing innovation with investor protection, and her final policy push could shape cross-border cryptocurrency regulation for years to come.