- SEC’s Peirce suggests US-UK sandbox for crypto innovation.
- Focus on cross-border coordination benefits.
- Impact on digital securities and tokenized assets.
SEC Commissioner Hester M. Peirce proposed a US–UK cross-border sandbox for crypto assets during her SEC speech on July 16, 2025.
This initiative aims to foster innovation and cooperation between the US and UK markets in cryptocurrency regulation, with potential benefits in data-sharing and increased service provider competition.
SEC Commissioner Hester Peirce has proposed a US-UK sandbox framework for crypto and tokenized assets. This initiative aims to facilitate coordinated oversight and stimulate cross-border innovation between both markets. The concept builds on previous bilateral cooperation structures.
Peirce’s proposal involves key players like the Bank of England and the UK Financial Conduct Authority. It lacks formal commitments but underscores a potential collaborative regulatory environment. Both nations could benefit from increased data-sharing and access to wider market innovations.
Proposed US-UK Crypto Sandbox
The proposal could impact how digital securities operate in both jurisdictions. It may streamline market operations by providing regulatory clarity and facilitating international competition. The exact implications on existing regulations remain to be established as formal collaboration proceeds.
While no formal funding or operational details are confirmed, Peirce’s proposal highlights potential changes to issuance, trading, and settlement processes. Any subsequent regulatory frameworks would affect market infrastructure and potentially influence digital securities and tokenized asset markets.
No immediate financial market disruptions are anticipated, as the sandbox remains an initial policy proposal. The approach reflects a strategic effort to synchronize regulatory experimentation across the Atlantic, without determining specific timelines or asset coverage.
Historical examples, such as the UK Digital Securities Sandbox, suggest possible regulatory benefits from tech-driven collaborative environments. The focus remains on leveraging shared insights to navigate complexities in crypto regulation, providing a basis for future governance models.
Hester M. Peirce, Commissioner, U.S. SEC, “Just over a year ago, I suggested another tool for regulators to use in bringing our markets together… I suggested a cross-border sandbox… I posited that a cross-border version of the sandbox could be even more effective: innovators could benefit from simultaneously serving UK and US markets; regulators… could benefit by seeing more data…; and the British and American public could benefit by being served by a greater pool of product and service providers.” (source)
