The UK government faced a setback in the House of Lords on Wednesday when peers voted in favor of an amendment that requires the Treasury to develop a national strategy for regulating digital assets. The amendment, titled “Digital assets strategy,” was proposed by Baroness Neville-Rolfe, a Conservative former Treasury minister, and was approved by 194 votes to 138.
The new clause mandates the Treasury to create, publish, and consult on a strategy for regulating and advancing digital assets and related digital financial market infrastructure in the UK. This includes overseeing cryptoassets, qualifying stablecoins, Central Bank Digital Currencies, tokenized securities, and other digital and tokenized financial assets.
While the UK is in the process of drafting a comprehensive crypto bill, it lags behind Brussels and Washington in terms of digital asset regulation. The Financial Conduct Authority in the UK finalized its regulatory framework for cryptoassets in June, set to take effect on October 25, 2027. The authorization gateway for firms opened on September 30 and will run until February 28, 2027.
In comparison, the EU’s Markets in Crypto-Assets regulation has been in place for service providers since December 30, 2024. The US, under President Donald Trump, passed the GENIUS Act in July 2025, establishing a federal framework for dollar-backed tokens. However, broader market-structure legislation in the US remains unresolved, with the Clarity Act facing obstacles in the Senate over DeFi, stablecoin yield, and ethics provisions.
The defeat in the House of Lords signifies a significant step towards shaping the regulatory landscape for digital assets in the UK. As the government works towards developing a national strategy, stakeholders in the digital asset space will be closely monitoring the progress and implications of this decision.
This article was originally published on Bitcoin Magazine and written by Mathew Di Salvo.