UK Lords Defeat Government Over Digital Assets Strategy Vote

On Wednesday, the UK government was defeated in the House of Lords when peers supported an amendment that would require the Treasury to create a national strategy for digital asset regulation.

The Lords approved the measure 194 to 138, as Conservative and Liberal Democrat peers united against a largely Labour voting bloc. The amendment, proposed by Conservative former Treasury minister Baroness Neville-Rolfe, was added to the Financial Services and Markets Bill.

Titled "Digital assets strategy," the new clause obliges the Treasury to prepare, publish and consult on a strategy covering regulation and development of digital assets and related digital financial market infrastructure in the UK.

JUST IN: U.K. House of Lords passes amendment requiring the government to develop a national cryptocurrency strategy

— Bitcoin Magazine (@BitcoinMagazine) September 11, 2026

According to the draft, the regulation of digital assets covers "cryptoassets, qualifying stablecoins, Central Bank Digital Currencies, tokenised securities and other digital and tokenised financial assets."

The UK is currently drafting a far-reaching crypto bill. In June, the Financial Conduct Authority completed its regulatory framework for cryptoassets, which will come into force on 25 October2027. The authorisation gateway for firms opened on30 September and remains open until 28 February 2027.

The UK lags behind Brussels and Washington in digital asset regulation. The EU's Markets in Crypto-Assets regulation has been applicable to service providers since 30 December 2024.

In the U.S., President Donald Trump signed the GENIUS Act into law in July 2025, creating a federal framework for dollar-backed tokens. However, broader market-structure legislation is still incomplete: the Clarirty Act passed the House in July 2025 with a vote of 294-134 but has stalled in the Senate due to disputes over DeFi, stablecoin yield and ethics requirements. A procedural vot is scheduled for next week.