UK House of Lords Votes Down Government's Digital Assets Plan

The UK government suffered a significant defeat in the House of Lords on Wednesday as peers backed an amendment to create a national strategy for regulating digital assets.

The new clause, titled 'Digital Assets Strategy,' would require the Treasury to prepare and publish a plan for regulating digital assets and related financial market infrastructure in the UK.

The regulation of digital assets includes cryptoassets, qualifying stablecoins, Central Bank Digital Currencies, tokenised securities, and other digital and tokenised financial assets.

The development comes as the country is drafting a sweeping new crypto bill. The Financial Conduct Authority finalized its regulatory framework for cryptoassets in June, with the regime set to take effect on 25 October 2027.