UK House of Lords backs mandatory digital asset strategy over Labour position

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 the Labour government’s opposition to the measure.

The amendment was added to the Financial Services and Markets Bill during its Report Stage on Wednesday. The bill is progressing through Parliament and would make broader changes to the UK’s financial services regulatory framework.

Amendment 88, introduced by Conservative peer Baroness Neville-Rolfe, 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 strategy would cover cryptoassets, stablecoins and tokenized securities, while addressing issues including innovation, consumer protection and firms’ access to banking, payment and settlement services.

The vote follows months of debate over the UK’s approach to digital assets. During a July debate, Treasury’s Minister for Investment, Lord Stockwood, pushed back on calls for a statutory framework, saying the government believed it already had a digital asset strategy and was executing it.

The ruling Labour party opposed the amendment because they believed it did not adequately address the rapid development of digital assets and the need for a cohesive regulatory framework.