SEC Proposes US-UK Regulatory Sandbox for Crypto Innovation

Hester Peirce, a Commissioner at the U.S. Securities and Exchange Commission (SEC), has proposed a joint regulatory sandbox between the U.S. and UK to foster innovation in crypto assets. The initiative focuses on promoting cross-border collaboration, aligning financial regulations, and encouraging technology breakthroughs in blockchain and tokenized assets. Peirce’s proposal was outlined during her London speech in July 2025. Key players like the SEC’s Crypto Task Force and the UK Financial Conduct Authority will likely be involved. The sandbox seeks to foster innovation while ensuring regulatory alignment between both countries. Peirce believes this initiative can enable developers to serve two markets simultaneously, offering benefits for participants and regulators alike. Access to richer datasets will empower regulators, while a flexible exit strategy will allow for adjustments as the technology evolves.