UK Digital Asset Strategy Wins House of Lords Backing

The UK House of Lords has passed an amendment to the Financial Services and Markets Bill, requiring the Treasury to publish and consult on a national digital asset strategy within 12 months.

Peers approved the amendment by a margin of 56 votes, with 194 voting in favor and 138 opposing it. The amendment requires the Treasury to examine how digital asset businesses operate under current UK legal and market conditions, including banking access and whether firms can obtain and retain payment, settlement, and other financial services.

The scope of the strategy includes cryptoassets, stablecoins, tokenized securities, digital settlement systems, and central bank digital currencies. The Treasury must consider risks to competition and lawful market participation when banks or payment providers deny services through blanket policies or assessments that do not account for the risk of each business.