UK House of Lords Backs Amendment Requiring Digital Asset Strategy

The UK House of Lords backed an amendment requiring the government to develop a digital asset strategy in a 194–138 vote on Wednesday, despite opposition from the Labour government. The amendment was added to the Financial Services and Markets Bill during its Report Stage on Wednesday, as the legislation continues through Parliament with broader changes to the UK’s financial services regulatory framework. According to Cointelegraph, Amendment 88 was introduced by Conservative peer Baroness Neville-Rolfe and would require the Treasury to 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 cover cryptoassets, stablecoins and tokenized securities, while also addressing innovation, consumer protection and firms’ access to banking, payment and settlement services. The vote followed months of debate over the UK’s approach to digital assets. According to Cointelegraph, during a July debate, Treasury’s Minister for Investment, Lord Stockwood, rejected calls for a statutory framework and said the government believed it already had a digital asset strategy and was carrying it out. The ruling Labour party opposed the amendment, arguing that it did not sufficiently address the rapid development of digital assets or the need for a cohesive regulatory framework. The UK Cryptoasset Business Council, which said it worked with lawmakers on the amendment, welcomed the vote on Thursday and pointed to Lord Chris Holmes’ question of whether the UK is “simply regulating digital assets” or “building a digital assets economy.” The bill must still return to the House of Commons, where lawmakers can accept, amend or reject the Lords’ changes.