House of Lords conducts final review of financial services bill before returning to House of Commons
During a session in the House of Lords, lawmakers in the upper house of the United Kingdom Parliament voiced their support for the Financial Services and Markets Bill.
The bill aims to bolster the nation’s financial services sector and potentially facilitate the widespread adoption of cryptocurrencies in the country. The discussions held on June 19 demonstrated collective advocacy among many members for the passage of this legislation.
Back to the House of Commons
Members of the legislative body conducted final checks during the third reading of the bill, focusing on making minor adjustments to ensure its effectiveness. Notably, no changes were proposed at this stage.
The discussion primarily revolved around the bill’s progress through the House of Lords.
With the conclusion of the third reading, the bill is set to move back to the House of Commons for further review and consideration of the amendments made by the Lords. Prior to this, the second reading of the Financial Services and Markets Bill took place in the House of Lords on January 10, 2023.
The Financial Services and Markets Bill, formulated with the objective of implementing the recommendations derived from the extensive Future Regulatory Framework review spanning from 2019 to 2022, aimed to introduce far-reaching transformations in the regulation of financial services.
One of the key aspects of the bill involved the provision for the revocation of retained E.U. law pertaining to the financial services sector.
By rescinding these laws, the bill aimed to transfer regulatory authority from the European Union to the financial services regulators within the U.K. This transfer of responsibility sought to ensure that the regulatory framework governing financial services aligns with the country’s post-Brexit vision and specific requirements.
Furthermore, the bill addressed the emerging domain of stablecoins, a type of cryptoasset designed to maintain a stable value by being pegged to an underlying asset or currency. It would establish a dedicated regulatory regime specifically tailored to govern stablecoins, aiming to provide clarity, and transparency.
The bill works to create appropriate oversight for stablecoins. This regulatory framework aimed to establish standards and safeguards to ensure the stability and reliability of stablecoins within the U.K.’s financial ecosystem.
While the original version of the bill encompassed provisions granting authority on digital asset regulation, the recent amendments introduced by the House of Lords appear to have omitted any changes directly affecting the crypto industry.
However, it is worth noting that the global landscape of cryptocurrency regulation is exerting a strong influence on the choices made by firms in terms of their business operations.
The regulatory crackdown by United States authorities targeting prominent exchanges like Coinbase and Binance has resulted in legal entanglements for these platforms as they navigate ongoing legal proceedings.
This highlights the increasing scrutiny faced by cryptocurrency exchanges and the potential ramifications they face in jurisdictions with stricter regulatory frameworks.