UK Lords Vote for Mandatory Digital Asset Strategy Despite Labour Opposition

The UK House of Lords has voted to require the government to develop a comprehensive digital asset strategy, passing an amendment to a major financial services bill over the ruling Labour party’s objections.

The amendment, known as Amendment 88, was introduced by Conservative peer Baroness Neville-Rolfe and passed by a vote of 194 to 138 on Wednesday. It mandates 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 required strategy must cover cryptoassets, stablecoins, and tokenized securities, addressing issues including innovation, consumer protection, and firms’ access to banking and payment services. The vote represents a significant push from the upper house of Parliament for a more formalized government approach to the sector.

The Labour government had opposed the amendment, arguing that it already has a digital asset strategy in place and is executing it. The bill, with the Lords’ amendment included, must now return to the House of Commons, where lawmakers can accept, amend, or reject the change.