In a London speech, U.S. Securities and Exchange Commission Commissioner Hester Peirce argued that deeper UK-US regulatory cooperation could better support innovation in global capital markets and reiterated her proposal for a cross-border “sandbox” that would let firms test distributed ledger technology and related market infrastructure across both jurisdictions under aligned conditions. Her remarks pointed to existing cooperation tools such as supervisory colleges, enforcement coordination, and substituted compliance in security-based swaps, and noted progress on resolving data access issues enabling U.S. examinations of more than 270 UK investment advisers serving U.S. clients. She set out design features she views as critical for any cross-border sandbox, including a clear exit path into a workable permanent regulatory environment, flexibility to extend timelines or raise activity and customer limits, equal access for incumbents and new entrants under transparent terms, and a focus on conditions tied to safe and effective operation rather than sustainability or diversity objectives. The discussion was framed largely around crypto and blockchain experimentation, citing potential use cases such as bitcoin and other crypto assets, stablecoins, non-fungible tokens, digital identity solutions, collateral management, and tokenization of securities and assets. Peirce suggested that operationalising a cross-border sandbox may depend on firms bringing concrete cross-border proposals to both regulators, while encouraging preparatory joint discussions with firms and regulators from both jurisdictions. She also said she hopes the SEC’s Crypto Task Force can collaborate with the UK Financial Conduct Authority, and highlighted that the SEC is seeking public comment on Foreign Private Issuer eligibility, inviting additional input including from UK companies.

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