The UK House of Lords approved a requirement for the Treasury to develop a national digital asset strategy, backing Amendment 88 by 194 votes to 138 during the Financial Services and Markets Bill’s report stage on September 9.
The amendment would require the Treasury, within 12 months of the legislation passing, to prepare, publish and consult on a strategy covering cryptoassets, qualifying stablecoins, central bank digital currencies, tokenized securities and other digital financial assets. It also extends the review to the infrastructure needed for digital markets to operate in the UK.
Strategy Would Cover Banking Access and International Competition
The measure, introduced by Conservative peer Baroness Neville-Rolfe alongside Lord Altrincham and Liberal Democrat peer Baroness Kramer, requires the Treasury to examine how digital asset firms operate under existing legal, regulatory and market conditions.
The strategy requirement specifically includes firms’ ability to obtain banking, payment and settlement services, as well as the effect that blanket or insufficiently risk-sensitive restrictions could have on competition, innovation and lawful market participation.
The Treasury would also have to consider regulatory developments in other jurisdictions, consumer protection, market integrity, financial stability and the UK’s international competitiveness. Lord Ranger of Northwood cited the US GENIUS and CLARITY Acts during the debate as evidence that competing financial centers are moving quickly on digital asset policy.
Consultation would include the Bank of England, Prudential Regulation Authority, Financial Conduct Authority, industry representatives and other parties selected by the Treasury.
Government Defends Existing Digital Markets Work
The government argued that substantial digital asset work is already underway, including its wholesale financial markets digital strategy and nine action groups led through Wholesale Digital Markets Champion Chris Woolard.
UK regulators have also moved further into formal crypto supervision. The FCA has already finalized its crypto rulebook, including authorization, custody, market-abuse and stablecoin requirements, while the Bank of England has established a separate systemic stablecoin framework for assets capable of affecting payments or financial stability.
Peers supporting Amendment 88 argued that those individual workstreams still lacked an overarching strategy covering regulation, infrastructure, banking access and the wider digital asset economy.
Bill Still Faces Third Reading Before Commons
The amendment now forms part of the Financial Services and Markets Bill, but it has not yet become law. The bill remains in the House of Lords, with third reading scheduled for September 15.
After completing its Lords stages, the bill must proceed through the House of Commons, where MPs can scrutinize and amend its provisions. Any differences between the two chambers would then need to be resolved before Royal Assent.
