The UK House of Lords voted 194-138 on Wednesday to approve an amendment that would require the government to develop a digital asset strategy, even as the Labour government opposed the measure.
The amendment was added to the Financial Services and Markets Bill during its Report Stage on Wednesday. The bill is moving through Parliament and would introduce broader changes to the UK’s financial services regulatory framework.
Amendment 88 sets a 12-month deadline for the Treasury
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, tokenized securities and digital financial infrastructure. It would also address innovation, consumer protection, and firms’ access to banking, payment and settlement services.
Labour opposed the measure during the debate
The vote follows months of debate over how the UK should handle digital assets. During a July debate, Treasury Minister for Investment Lord Stockwood pushed back against 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 on the grounds that it did not adequately address the rapid development of digital assets and the need for a cohesive regulatory framework.
Industry group welcomed the result, but Commons still has the final say
The UK Cryptoasset Business Council, which said it worked with lawmakers on the amendment, welcomed the vote on Thursday. The group pointed to Lord Chris Holmes’ question of whether the UK is “simply regulating digital assets” or “building a digital assets economy.”
The bill must still return to the House of Commons, where lawmakers can accept, amend or reject the changes made by the Lords.