- The UK House of Lords approved an amendment requiring the government to formulate and publish a digital asset strategy, passing the measure by 194 votes to 138.
- The strategy would cover crypto assets, stablecoins and tokenized securities, with the Treasury required to publish it within 12 months of the Financial Services and Markets Act taking effect.
- The amended bill will now return to the House of Commons, which can accept, revise or reject the Lords’ changes.
The UK House of Lords has backed a proposal requiring the government to develop a formal strategy for digital assets despite opposition from the ruling Labour Party.
The upper chamber approved Amendment 88 by 194 votes to 138 during its review of the Financial Services and Markets Bill, according to a Sept. 10 report from Cointelegraph.
The amendment was introduced by Conservative peer Baroness Neville-Rolfe and would require the UK Treasury to formulate and publish a digital asset strategy.
A consultation would also need to be conducted as part of the process.
Strategy Would Cover Crypto and Stablecoins
Under the amendment, the Treasury would have 12 months from the Financial Services and Markets Act taking effect to publish its strategy.
The plan would cover crypto assets, stablecoins and tokenized securities.
It would also need to consider measures designed to promote innovation across the UK digital asset industry while protecting consumers.
Another focus would be improving access to banking, payment and settlement services for companies operating in the sector.
The requirements could give the UK a broader policy framework extending beyond individual regulations for specific types of digital assets.
Labour Government Opposes the Amendment
The Labour government opposed the measure, arguing that placing a digital asset strategy into law could create challenges given how quickly the industry changes.
The government has also raised concerns about maintaining consistency across the wider regulatory framework.
During a House of Lords debate in July, Treasury Minister Lord Livermore said the government was already developing and implementing a digital asset strategy.
His comments indicated that Labour supports developing policy for the sector but does not believe a separate legal mandate is necessary.
Bill Returns to House of Commons
The UK Cryptoasset Business Council welcomed the House of Lords vote.
The industry group said it participated in drafting the amendment and argued that a key question for policymakers is whether the UK will simply regulate digital assets or actively support the industry’s development.
However, the Lords’ vote does not guarantee that the amendment will become law.
The amended Financial Services and Markets Bill will now return to the House of Commons.
Members of the lower chamber can accept the Lords’ changes, revise them or reject them, meaning the requirement for a formal digital asset strategy could still change before the legislation is finalized.
