HM Treasury is facing fresh pressure to keep a one-year deadline for a UK digital finance strategy, as Parliament approaches a vote on the legislation containing it. Finance industry groups urge Treasury not to delay the strategy, warning that removing Clause 50 could leave the government without a committed timetable for the work.
Almost a dozen industry bodies, including Innovate Finance, TheCityUK and TechUK, wrote to Chancellor John Healey before the vote expected next week. They asked him to reaffirm the government’s commitment to publish a digital finance blueprint within 12 months. The source report on the industry letter said its authors see the plan as a way to clarify the UK’s long-term direction for digital assets.
Why industry urges Treasury not to delay the strategy
The letter described a strategy as a “north star” for businesses and investors. Its authors said other jurisdictions are moving to attract digital-asset businesses, investment and talent. They cautioned that the UK should not assume its existing strengths will automatically secure long-term leadership.
The Financial Services and Markets Bill requires the government to prepare, publish and consult on a strategy for digital-asset regulation. The plan followed a Conservative party amendment after the government initially resisted it. Supporters in the crypto and stablecoin sector regarded the requirement as a significant result after a lengthy lobbying effort.
Clause 50 sets the timetable at stake
Terms agreed to by Rachel Reeves’ Treasury set out areas the strategy should examine. They include the government’s approach to digital-asset regulation, frameworks used by international counterparts and how protections should be balanced with growth. The bill says the findings should be published and consulted on within a year.
Industry groups are concerned the Treasury could use its Commons majority to weaken or postpone the requirement at next week’s vote. Their specific request is that the government not remove Clause 50, which compels ministers to complete the blueprint within a year.
At a Lords debate in September, investment minister Lord Pitt-Watson argued that the deadline was redundant. He said meeting it could cut across work already under way at regulators and government departments. The source does not say what wording the government will support at the coming vote.
Supporters cite certainty as regulators work
Katie Harries, Coinbase’s director of policy, urged the government to retain the clause and deliver the strategy. She described it as a source of certainty, direction and shared ambition for the UK’s digital-asset sector, while adding that regulation is one part of the wider task.
Shadow City minister Mark Garnier also backed the amendment. He said the government should support publication of a digital-assets strategy and demonstrate commitment to newer financial instruments. He called removing that support a serious mistake.
The debate comes as financial regulators work on how to supervise crypto and stablecoin businesses. Supporters say heavy-handed rules could threaten industry growth, while critics warn that weak oversight could expose investors and the financial system to a speculation-driven collapse.
The Bank of England is expected to complete its stablecoin regime later this year. The source describes that regime as covering blockchain-based currencies tied to a standard currency. The government had been approached for comment, and the parliamentary vote remains the next stated decision point. Related Block Editorial coverage examines criticism of an SEC crypto proposal, a CFTC rulemaking proposal, and crypto wallet infrastructure.
