UK Lords Demand National Crypto Strategy Amid Global Regulatory Rush

The UK's crypto policy has taken an unexpected turn as the House of Lords voted in favor of an amendment to the Financial Services and Markets Bill, requiring the Treasury to create a national strategy for digital assets.

The amendment, introduced by Conservative former Treasury minister Baroness Neville-Rolfe, passed with 194 votes in favor and 138 against on September 9. This means that within 12 months of the legislation becoming law, the Treasury must prepare, publish, and consult on a national strategy for digital assets.

The proposed strategy will cover not only conventional cryptocurrencies but also qualifying stablecoins, central bank digital currencies, tokenized securities, and other digital financial assets. It will also examine access to banking, payment, and settlement services, as well as risks to competition and innovation when those services are withdrawn.

This development is significant for exchanges, stablecoin issuers, tokenization companies, and traditional financial institutions entering the crypto market. The U.K. government has already given the nod for the Bank of England to support innovation in payments, including stablecoins and other forms of digital settlement.