UK House of Lords Votes to Require Formal Digital Asset Strategy

The UK House of Lords approved an amendment requiring the Treasury to develop a comprehensive digital asset strategy, passing by a vote of 194 to 138 despite opposition from the ruling Labour government. The amendment was added to the Financial Services and Markets Bill during its Report Stage, as the broader legislation continues moving through Parliament to reshape the UK’s financial regulatory framework.

Strategy Would Cover Broad Range of Digital Assets

Introduced by Conservative peer Baroness Neville Rolfe, the amendment would require the Treasury to prepare, publish and consult on a formal digital asset strategy within 12 months of the bill becoming law. The strategy would need to address cryptoassets, stablecoins and tokenized securities, along with related issues including innovation, consumer protection and firms’ access to banking and payment infrastructure.

Debate Reflects Ongoing Disagreement Over UK’s Approach

The vote follows months of discussion over how the UK should regulate digital assets, with a Treasury minister previously arguing during a July debate that the government already had a functioning strategy in place and did not need a statutory requirement. Labour opposed the amendment, arguing it failed to adequately address the fast pace of digital asset development or the need for cohesive regulation.

Industry groups that supported the amendment welcomed the vote, framing it as a pivotal moment for determining whether the UK aims simply to regulate digital assets or actively build a broader digital asset economy. The bill must still return to the House of Commons, where lawmakers will decide whether to accept, modify or reject the Lords’ changes.