Property (Digital Assets etc) Bill [Lords]

Kieran Mullan Excerpts

Wednesday 19th November 2025 Commons Chamber

[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.

[The Second Deputy Chairman]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Dr Mullan]

I rise simply to put on the record my thanks, particularly to the Bill Committee and to the Law Commission for its diligence. Yet again we see the great benefit that our state machinery and apparatus as whole derive from having the Law Commission. I have nothing further to add.