UK House of Lords approves mandatory digital asset strategy amendment

The UK House of Lords has approved an amendment to the Financial Services and Markets Bill that would require the Treasury to develop and consult on a national digital asset strategy. The amendment passed with a vote of 194 to 138, receiving support primarily from Conservative and Liberal Democrat peers, while 127 Labour peers voted against it.

If the amendment survives further scrutiny in the House of Commons, the Treasury must publish and consult on the strategy within 12 months of the bill receiving Royal Assent. The scope of the proposed strategy includes cryptoassets, qualifying stablecoins, central bank digital currencies, tokenized securities, and other digital financial products.

The mandate also requires officials to examine how digital asset businesses operate under current UK legal and market conditions. This includes reviewing banking access to ensure that firms can obtain and retain essential payment, settlement, and other financial services, specifically considering risks to competition and market participation.