UK Lords Defeat Government 194-138 Over Crypto Strategy

The House of Lords voted 194‑138 to compel the UK Treasury to draft a national strategy for digital assets within 12 months of the Financial Services and Markets Bill becoming law. The amendment, introduced by former Treasury minister Baroness Neville‑Rolfe, signals heightened parliamentary pressure on the government’s approach to crypto, stablecoins and tokenised finance.

Amendment Details

The amendment requires the Treasury to publish and consult on a comprehensive strategy covering:

• Crypto‑assets and qualifying stablecoins
• Central bank digital currencies (CBDCs)
• Tokenised securities and other digital financial assets
• Access to banking, payment and settlement services
• Risks to competition and innovation when services are withdrawn

Parliamentary Support

Voting breakdown: 138 Conservative peers and 48 Liberal Democrat peers supported the amendment, while 127 Labour peers opposed it.

Regulatory Context

The UK already has a crypto‑asset regulatory framework. The FCA finalized rules and guidance on June 30, with the authorization gateway opening on September 30, 2026 and the regime taking effect on October 25, 2027. The Lords’ amendment seeks a broader strategy that links regulation, tokenisation, payments infrastructure and national competitiveness.

International Landscape

Other jurisdictions have advanced their digital‑asset rules: the EU’s MiCA regime became fully applicable on December 30, 2024; the US GENIUS Act established a federal framework for payment stablecoins in July 2025, while broader crypto legislation remains under debate.

Next Steps

The Financial Services and Markets Bill will have its third reading in the Lords on September 15 before returning to the Commons.