The clause responds to the development of new types of assets such as crypto-tokens, which challenge the traditional categories of property. I am grateful to the other place for scrutinising this legal framework incredibly well. As a result, we have a fine piece of legislation to discuss.

The digital world is often mired in legal ambiguity about how common-law systems treats digital assets. At present, the law recognises two primary forms of personal property: things in possession and things in action. However, digital assets, which cannot be physically possessed and often do no count for a claim against another person, do not really fit easily into either category. The need for clarity is imperative. We risk undermining individual rights and weakening legal solutions in cases involving cryptoassets, non-fungible tokens and other digital holdings.

This Bill is appropriate at this time, when we are seeing a growing use of digital assets across a variety of sectors. They are being used as investments, stores for value and tokens of identity and ownership by more and more people than ever before—recent figures from the Financial Conduct Authority indicate that nearly 12% of UK adults now hold crypto assets, a figure that has more than doubled since 2021. However, victims of fraud, those seeking restitution in cases of insolvency, or simply those wishing to assert ownership over what they rightfully hold have been operating in a murky legal landscape. This Bill leaves room for common law to develop in that sphere of property. That will help the law to reflect the ever-evolving nature of technology, but it must be monitored over time to ensure that regulation ultimately aligns with the need to protect individuals’ rights and support the economy.

He is a "Member" of the All-Party Parliamentary Group on Blockchain Technologies.

He is a member of the All-Party Parliamentary Group on Blockchain Technologies.