Property (Digital Assets etc) Bill [Lords]

Sarah Sackman Excerpts

Wednesday 19th November 2025 Commons Chamber

[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.

--- Later in debate ---

[The Second Deputy Chairman]

I call the Minister to wind up the debate

[Sarah Sackman]

With the leave of the Committee, I give my sincere thanks to the hon. Members for Bexhill and Battle (Dr Mullan) and for Woking (Mr Forster). It has been a pleasure to discuss the clauses in more detail, and it is good to see constructive consensus about a piece of legislation. I think we all agree that it brings legal certainty, keeps pace with legal innovation, is proportionate, and meets the moment, with the growth of cryptocurrency and other related industries. I thank all those who have contributed to this important debate.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

The Deputy Speaker resumed the Chair.

Third Reading

[Sarah Sackman]

I beg to move, That the Bill be now read the Third time.

Let me I start by reiterating my sincere thanks to Members of this House and the other place for their support and insightful contributions. I am particularly grateful for the support expressed on Second Reading by the hon. Members for Bexhill and Battle (Dr Mullan) and for Woking (Mr Forster), and all Members who have contributed throughout the passage of the Bill. Their engagement demonstrates strong, cross-party momentum behind modernising our personal property law.

I also pay tribute to the former Special Public Bill Committee, which gathered expert evidence and was ably led by Lord Anderson of Ipswich. The Law Commission deserves particular recognition for its exemplary work, led by Laura Burgoyne and Christopher Long, and on which this Bill stands. Their engagement with stakeholders has been gold standard and demonstrated the benefits of coherent law reform—transparent, expert-led and deeply consultative. I would also like to thank the former law commissioner Professor Sarah Green for her contribution to this work and for giving evidence at Committee.

Lastly, I put on record my thanks to the officials who have worked tirelessly on this Bill. I thank my policy officials, Alicia Love and Jonathan Fear, the Bill managers, Harry McNeill-Adams and Lily Sullivan, and Helen Hall from the Office of Parliamentary Counsel. I also thank my private office, in particular my private secretary, Amelia Overton, and Meheret Ashenafi.

This is more than a Bill; it is a landmark step towards ensuring that the law of England and Wales, and Northern Ireland, not only keeps pace with innovation but leads it. The Bill will give digital pioneers the certainty they need, backed by the legal strength they expect from our country. It shows that our economy is open, our ambition is global, and we are here to support innovation. By supporting the recognition of digital assets as property, the Bill helps establish legal certainty.

The Bill gives industry the confidence to innovate here, knowing that our legal system can support new models of ownership, transfer and settlement. This is how we translate legal reform into economic leadership. It is how we show that we are at the forefront of the technical revolution, and how that can be seen in the real world with the London Stock Exchange’s announcement of a new digital asset platform. This is the first major global stock exchange to implement a blockchain-based system.

This Government are backing growth, backing technology and backing Britain’s future, and as such, I commend the Bill to the House.