Key facts
- The UK House of Lords voted 194-138 to back an amendment requiring the government to develop a digital asset strategy.
- The amendment was added to the Financial Services and Markets Bill.
- The strategy must be prepared, published, and consulted on within 12 months of the bill becoming law.
- The strategy will cover cryptoassets, stablecoins, and tokenized securities.
- The Labour government opposed the amendment, citing concerns about the rapid development of digital assets and the need for a cohesive regulatory framework.
The UK House of Lords has voted in favor of an amendment that would compel the government to create a comprehensive digital asset strategy. The amendment, passed by a vote of 194 to 138 on Wednesday, was added to the Financial Services and Markets Bill. This bill is currently progressing through Parliament and aims to enact broader changes to the UK's financial services regulatory framework.
Introduced by Conservative peer Baroness Neville-Rolfe, Amendment 88 mandates that the Treasury prepare, publish, and consult on a digital asset strategy within 12 months of the Financial Services and Markets Bill becoming law. The proposed strategy would encompass cryptoassets, stablecoins, and tokenized securities, while also addressing key issues such as fostering innovation, ensuring consumer protection, and facilitating firms' access to essential banking, payment, and settlement services.
The vote follows months of discussion regarding the UK's stance on digital assets. In a July debate, Lord Stockwood, the Treasury's Minister for Investment, argued against the necessity of a statutory framework, stating that the government already possessed and was actively implementing a digital asset strategy. The ruling Labour party, however, opposed the amendment, expressing concerns that it did not sufficiently account for the rapid evolution of digital assets and the critical need for a unified regulatory approach.
The UK Cryptoasset Business Council, which indicated it collaborated with lawmakers on the amendment, welcomed the outcome. The council highlighted Lord Chris Holmes's pertinent question about whether the UK's objective is merely to regulate digital assets or to actively build a digital assets economy. The bill must now return to the House of Commons, where its proposed changes can be accepted, modified, or rejected by lawmakers.