The UK’s Financial Services and Markets Bill (FSMB) has been approved by the House of Lords, paving the way for stablecoin and crypto regulation as well as supervision of crypto promotion.
Key Points
- UK’s Financial Services and Markets Bill (FSMB) gets approved by the House of Lords, following previous approval by the House of Commons.
- FSMB proposes regulation of stablecoins and cryptocurrencies, as well as supervision of crypto promotion.
- Consideration of Amendments and Royal Assent are the final stages before the bill becomes law.
- The bill’s expansion now includes regulation of all cryptocurrencies and aims to position the UK as a global cryptoasset technology hub.
The Financial Services and Markets Bill (FSMB), which proposes stablecoin and crypto regulation, as well as the supervision of crypto promotion, has been approved by the House of Lords in the UK. This approval comes after the bill was already approved by the House of Commons and will now enter the final stages of Consideration of Amendments and Royal Assent.
Consideration of Amendments is the final reading of the bill by both Houses. The House of Commons will make any amendments they see fit, and then the House of Lords will approve or deny these changes. The bill will go back and forth until an agreement is reached between the Houses.
Royal Assent is the formal agreement by the King to make the bill a law. The last time a bill was denied by the Monarch was in 1708 with the Scottish Militia Bill. Therefore, it is highly likely that some version of the 340-page FSMB will become UK law in the near future.
BREAKING:🇬🇧New UK #Crypto Stablecoin laws pass through Parliament #bitcoin pic.twitter.com/Qsqv01Kg0J
— Crypto Macro (@cryptomacro14) June 19, 2023
What Does the Bill Mean for Crypto?
Initially, the bill only included plans to regulate stablecoins. However, through amendments, all cryptocurrencies have been added as a regulated activity. Additionally, crypto promotion supervisions were included as the bill went through the legislative process.
Andrew Griffith, Economic Secretary to the Treasury, revealed in April that the UK could expect crypto-specific regulation within the next 12 months. He also expressed the goal of positioning the UK as a global hub for cryptoasset technology. This development comes shortly after the European Union implemented its own regulation for Markets in Crypto Assets (MiCA).
