Kieran Mullan

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.

As the Minister explained, for centuries the law has recognised two traditional categories of personal property: things in possession, referring to tangible objects such as a bar of gold, and things in action, such as debts or contractual rights enforceable only through legal process. However, the rise of the digital economy has introduced a growing range of assets that defy those historical classifications. From crypto tokens and digital files to in-game items and carbon credits, individuals and businesses now interact with a third category of asset. This Bill introduces that third category of personal property by confirming what the courts have been increasingly willing to suggest: that a thing is not precluded from being treated as property merely because it does not fit the traditional mould. It does so in a deliberately modest way, allowing the common law to evolve with technological change, rather than attempting to predict or prescribe it.