Property (Digital Assets etc) Bill [Lords]

Judith Cummins Excerpts

Wednesday 19th November 2025 Commons Chamber

Question proposed, That the clause stand part of the Bill.

[The First Deputy Chairman of Ways and Means (Judith Cummins)]

With this it will be convenient to discuss clause 2 stand part.

I remind Members that in Committee they should not address the Chair as Mr or Madam Deputy Speaker, but use our names. Madam Chair, Chair or Madam Chairman are also acceptable.

[The Minister for Courts and Legal Services (Sarah Sackman)]

It is a pleasure to serve under you, Madam Chair.

I am pleased to open this discussion on the clauses of a focused but important Bill, designed to drive innovation, enhance legal certainty, and strengthen our standing in the global digital economy. Let me turn first to clause 1—an unassuming clause on the page, but one with important implications for the future of our legal system and our economy.

Clause 1 is the engine room of the Bill. It provides a clear and powerful statement: that a thing—including something digital or electronic—can be recognised as personal property, even if it does not fall within either of the categories that our legal system has traditionally recognised. For centuries the law has drawn a simple line: personal property was either a “thing in possession”, that being a physical object such as a car or a watch, or a “thing in action”, something that exists because the law says it does and is enforced through legal action, such as a debt or a contractual right. However, the world has changed. Technology has leapt forward, and our law must keep pace. Today we have assets such as crypto-tokens. They are not physical objects, yet their existence is not reliant on the law. They do not fit comfortably into either of the traditional categories.

Our courts have begun to acknowledge that such assets can and should be the subject of property rights, but without a clear, binding legal foundation, uncertainty remains—uncertainty that could stifle innovation, deter investment, and push the digital economy elsewhere. This Government will not allow that to happen. Driving sustainable growth is a top priority for us, and that means giving businesses and investors the certainty that they need to thrive. With this single clause, we are removing doubt and sending a clear message: we are open for business in the digital age.

By removing ambiguity, clause 1 ensures that those who hold or transact in digital assets are better supported to defend their property rights, transfer them and recover them when it matters most. The Bill reinforces our position as a global jurisdiction of choice for legal innovation, emerging technology and the digital economy. We are leading from the front. To be clear, clause 1 does not attempt to draw rigid lines around what qualifies as property—that is a deliberate choice. It rightly empowers our courts to continue developing the common law, case by case, applying centuries of legal wisdom to the frontiers of a digital economy. The reference to “digital or electronic things” in the Bill simply reflects where the issues most commonly arise today, without boxing in where the law might go tomorrow. The clause paves the way for fairer outcomes in cases of theft, fraud, commercial dispute or insolvency involving digital assets. It will reduce litigation costs, promote market stability and underpin our reputation as a jurisdiction of choice in a digital world. This is a small clause with big consequences. It is a bold, forward-looking step that reaffirms our commitment to legal certainty, technological progress and global leadership.

Clause 2 sets out the title, territorial extent and commencement date. Once granted Royal Assent, the legislation will become the Property (Digital Assets etc) Act 2025. That title—Digital Assets etc—is no accident. It has been carefully chosen to capture the technologies of today, such as crypto-tokens, while keeping the door open to future innovations. This is a law built not just for now but for what may come next. The Act will extend to England and Wales, and Northern Ireland. That will minimise legal discrepancies across jurisdictions and help to ensure that the benefits, such as legal clarity, investor confidence and streamlined dispute resolution, are more widely felt across these jurisdictions. I draw the Committee’s attention to the fact that the Bill does not extend to Scotland, owing to differences in property law. However, the Scottish Government introduced their own Digital Assets Bill on 30 September, confirming that certain kinds of digital assets can be objects of property under Scots private law.

Importantly, the Act will come into force the moment it receives Royal Assent—no delays, no retrospective effect—because the legislation does not create new burdens. It confirms and clarifies the law as it has been developing under common law. As a result, there will be immediate certainty, minimal disruption, and a strong foundation for our digital economy. I commend the Bill to the Committee.

[The First Deputy Chairman of Ways and Means (Judith Cummins)]

I call the shadow Minister.

[Dr Kieran Mullan (Bexhill and Battle) (Con)]

I am pleased to speak again on behalf of the Opposition as we carry forward the constructive debate that we had on Second Reading.

Let me restate from the outset our support for the Bill, which represents a careful, modest step in the right direction, and preserves the inherent flexibility of the common law while giving just enough statutory certainty to ensure that businesses, innovators and courts know the ground beneath their feet. That balance is vital. If we over-prescribed in statute, we would risk freezing progress. If we left matters entirely to the interpretation of the courts, we would risk fragmentation and delay. The Bill avoids both extremes.

Importantly, this legislation was not born overnight. It is the product of the rigorous work of the Law Commission—work commissioned by the last Conservative Government, who recognised early the need for clarity in this space if the UK was to stay competitive internationally. The commission’s conclusion was clear: certain digital assets simply do not fit neatly into the centuries-old categories of things in possession or things in action. Without intervention, the risk grew that uncertainty would hold back investment, undermine commercial transactions and frustrate innovators and consumers.

The Bill answers that challenge in the right way. It does not attempt to define every kind of digital asset that might emerge. Nobody in this Chamber—or indeed beyond it—can predict the full scope of the technologies that will shape our financial and commercial future in the coming decades. Instead, the Bill does something both restrained and profound: it confirms that digital things are not excluded from attracting property rights merely because they fall outside the old categories. Beyond that, it gives our common law the space it needs to continue doing what it has done for centuries: develop sensibly, case by case, guided by principle rather than by prescription.

That is not to say that the state has been inactive in related causes. Since 2023, cryptoasset promotion has been subject to the Financial Conduct Authority rules, the money laundering regulations have been amended for the new cryptocurrency class, and the Government have consulted on bring crypto-trading platforms and custody services within the broader perimeter of financial regulation. The Bank of England and the FCA are exploring robust frameworks for stablecoins and custody. However, none of this works unless the foundational question, “What is the legal status of these assets?”, is clearly answered. That is exactly what the Bill provides.

Let me end by reiterating what I said on Second Reading: the UK must remain at the forefront of global legal innovation. When technological change accelerates, the temptation can be either to rush into rigid regulation or to do nothing at all. The Bill avoids both pitfalls. It is proportionate, it is principled, and it is rooted in the understanding—championed strongly by the previous Conservative Government—that legal certainty is a foundation for growth, investment and innovation in this area. For all those reasons, the Opposition will continue to support the Bill, and we look forward to working constructively to ensure that it delivers the clarity that our courts, consumers and businesses need.