UK Lords Vote 194-138 For Digital Asset Strategy

The House of Lords approved the digital asset strategy amendment by a margin of 56 votes. The final tally stood at 194 in favor and 138 against. This vote occurred during the Report Stage of the Financial Services and Markets Bill.

The amendment requires the Treasury to prepare and publish a national strategy. It must also consult on the regulation of digital assets. The 12-month deadline begins once the bill receives Royal Assent. The scope covers cryptoassets, stablecoins, and tokenized securities.

Treasury Faces Strict Twelve Month Deadline

Baroness Neville-Rolfe moved Amendment 88 to add this requirement. The amendment is now listed as Clause 50 in the bill. It mandates a review of how digital asset businesses operate under current laws. Banking access for these firms is a specific part of the required review.

The Treasury must examine risks to competition and market participation. It must assess whether banks deny services through blanket policies. The strategy must also address consumer protection and financial stability. Officials will review current and planned rules to identify necessary changes.

Consultation with the Bank of England is mandatory for the strategy. The Prudential Regulation Authority and Financial Conduct Authority must also provide input. Industry groups will participate in the consultation process. The Treasury may include other parties if their input is deemed necessary.

Peers Demand Single Policy Framework

Neville-Rolfe argued that the UK lacks a single policy framework. She noted that more than one in 10 UK adults own a digital asset. Firms need clearer information about regulator responsibilities. She distinguished between ambition for tokenization and actual strategy.

Lord Ranger of Northwood highlighted banking access as a practical obstacle. He stated that compliant firms still struggle to secure bank accounts. Payment and settlement services remain difficult to obtain for some companies. This issue affects the operational viability of registered digital asset firms.

Bill Moves Toward Commons Vote

The bill must now pass through the House of Commons. The requirement becomes law only after this final step. Conservative and Liberal Democrat members provided most of the support in the Lords. One hundred and twenty-seven Labour peers voted against the proposal.

According to GN markets/crypto (en-US), the vote signals a shift toward statutory regulation. The UK aims to build a digital assets economy rather than just regulate it. Banks and financial providers are testing tokenized deposits and digital collateral. These systems require a clear legal foundation to function effectively.