This will see the financial regulatory bodies collaborate and support innovative firms through each other’s fintech initiatives: LabCFTC and FCA Innovate.

The arrangement on fintech innovation focuses on information-sharing regarding fintech market trends and developments.

It also facilitates referrals of fintech companies interested in entering the others’ market, and sharing information and insight derived from each authority’s relevant sandbox, proof of concept, or innovation competitions.

“International borders shouldn’t act as a barrier to innovation and competition in financial services and that is why agreements like the one we have signed today with the CFTC, a forward-looking and proactive regulator, are so important,” said Andrew Bailey, chief executive of the FCA.

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“As our first agreement of this kind with a US regulator, we look forward to working with LabCFTC in assisting firms, both here in the UK and in the US, who want to scale and expand internationally in our respective markets.”

As part of the arrangement, the FCA and the CFTC will be hosting a joint event in London to demonstrate how firms can engage with both regulators.

J Christopher Giancarlo, chairman of the CFTC, added: “The FCA’s Project Innovate is the gold standard for thoughtful regulatory engagement with emerging technological innovation.

“Therefore, I am delighted to join Andrew Bailey in this arrangement to demonstrate our cross-Atlantic commitment to facilitating market-enhancing innovation and sharing best practices in fintech engagement.

“This is the first fintech innovation arrangement for the CFTC with a non-US counterpart.

“We believe that by collaborating with the best-in-class FCA fintech team, the CFTC can contribute to the growing awareness of the critical role of regulators in 21^st-century digital markets.”