Government Defeated as Lords Back UK Digital Assets Strategy

According to reporting by Bitcoin Magazine, the UK government suffered a defeat in the House of Lords when peers backed an amendment requiring the Treasury to draw up a national strategy for regulating digital assets. The upper chamber approved the measure by 194 votes to 138, combining Conservative and Liberal Democrat peers against Labour votes.

Moved by Conservative former Treasury minister Baroness Neville-Rolfe as part of the Financial Services and Markets Bill, the amendment forces the UK Treasury to consult on a strategy for regulating cryptoassets, stablecoins, tokenized securities, and digital financial infrastructure. The draft specifies that regulation covers cryptoassets, qualifying stablecoins, Central Bank Digital Currencies, tokenized securities, and other digital and tokenized financial assets.

Meanwhile, the Financial Conduct Authority finalized its cryptoasset regulatory framework, with the regime taking effect on October 25, 2027, and its firm authorization gateway running from September 30 to February 28, 2027. The source notes that Britain trails Brussels and Washington, where the EU's Markets in Crypto-Assets regulation applies and the U.S. signed the GENIUS Act.