Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025

Debate between Baroness Kramer and Lord Wilson of Sedgefield

Wednesday 28th January 2026 Grand Committee

[Baroness Kramer (LD)]

My issue on this is related but slightly different. If we are dependent on dollar stablecoin for international trade, which is the direction of travel, and the US Government decide that they do not like either a policy that we have or a piece of trade, they can, through the companies that sit behind that stablecoin, in effect shut us down and cut us out. That is a very different set of circumstances from those in which we live today, where they might want to do that, but they cannot. They may try to make banks act in the way that they want, but they would have a far more challenging job in doing that. I am just concerned that that thinking is not embedded in the way that we are structuring this and doing the regulation. That is my concern. I see the plumbing advantages of stablecoin, but I worry about where the power levers are set. I cannot see that this addresses any of that.

[Lord Wilson of Sedgefield (Lab)]

That is a very important question about monetary sovereignty. While most stablecoins today are US-denominated—I think about 99%—and issued overseas, this instrument lays the groundwork for a thriving ecosystem, including UK- issued pound-denominated stablecoins. The Government are considering the regulators’ proposals on stablecoin-backed assets that include UK government debt. The Treasury will assess the fiscal implications and benefits of stablecoins in this context, and I think the Treasury is well aware of the noble Baroness’s concerns. It is something that we take very seriously, and we will probably hear more about that as time goes on.

The Government are committed to ensuring that the UK remains an open and connected financial centre, as we need to be in a globalised economy, and to upholding its commitment to international regulatory standards. We are working with the transatlantic taskforce on all these issues to enhance US-UK collaboration. We are aware of the issues that the noble Lord raised on capital markets, and the taskforce will explore options for short to medium-term collaboration on digital assets, additional opportunities for wholesale digital markets innovation and ways to improve links between our capital markets to enhance the growth and competitiveness of both UK and US markets.

On the specific quote used by the noble Baroness, Lady Kramer—

“same risk, same regulatory outcome”—

we think that this instrument allows the FCA, as the regulator, to set appropriate and detailed rules addressing market risks. We therefore do not believe that we have the same regulations as always for the risks.

Noble Lords asked whether there is a problem with the anti-money laundering requirements and whether this instrument goes far enough to look after consumers. To be clear, the Government are not weakening the anti-money laundering requirements; for example, they will continue to apply to crypto asset firms exactly as they do today. This legislation goes further by introducing a robust financial service regulatory regime that will require all firms offering crypto asset services, either in the UK or for UK consumers, to be authorised and regulated by the FCA and to comply with comprehensive conduct and prudential rules.

It is fair to say, I think, that this SI goes a long way to help to protect consumers. The creation of a register of authorised crypto asset firms will make it easier for consumers to identify legitimate firms. The requirement for those firms to comply with the comprehensive conduct regime will reduce the risk of poorly run firms and bad practice resulting in consumer harm. By defining and prohibiting market abuse—as well as placing an obligation on firms to put systems in place to prevent, detect and disrupt such abuse—this instrument will improve the integrity of crypto asset markets and lead to better consumer protection.

Also, the regime will leave the UK well-placed. There was a question about what Europe is doing as well. We continue to co-operate internationally with our partners, including the EU; we also continue to watch the development of the digital euro with great interest.

Both noble Baronesses asked about parliamentary scrutiny, in essence. We believe that this instrument sets out a clear regulatory framework that will ensure that the Government’s aims and objectives for the sector are reflected in the regulations’ final rules. Giving the FCA flexibility on the detail of the regime will allow it to respond nimbly to developments in this fast-evolving sector; that said, Parliament will be able to hold the regulator and government to account on an ongoing basis using the regime, once it is live, through normal means such as requiring attendance at Select Committees. Also, should it become apparent that the regime is not working as intended, the Government will have the option to return to Parliament and amend the framework under which the FCA operates.

Someone asked what the impact on small businesses will be. The impact assessment published alongside the instrument sets out the impact that the Government expect the regime to have on all businesses, including small businesses. The FCA has existing duties to consider the most appropriate way of implementing this regime.

I hope to get through all noble Lords’ questions. As far as our people know, in terms of what is regulated, firms authorised for the new crypto asset activities will appear on the FCA register in the same way as firms authorised for traditional financial services activities.

As far as payments are concerned, I think stablecoin was mentioned. Government work is under way in order to take forward broader work to modernise assimilated law on payments, including to ensure that the UK’s payments regime is fit for tokenised payments such as stablecoin. That work is ongoing.

We all know about the opportunities for cryptocurrency. We cannot disinvent it. We have to make sure that it works for the British economy and the British people; and that people are protected. This SI lays down a framework so that consumers can be protected.

I turn to the two final questions. The Government are committed to making the UK a world-leading destination for digital assets. Our regulatory regime has been developed through extensive engagement with industry and international partners, ensuring it is both internationally competitive and aligned with global standards. This legislation will support UK growth by giving crypto asset firms the regulatory certainty needed to invest here and drive innovation in our financial services sector. So, in answer to the question of the noble Baroness, Lady Neville-Rolfe, we do not think that this is too restrictive.

Finally, on financial education, which we are all keen to see in our schools and broader society, the Government want people to have the confidence and skills they need to manage their money. The Money and Pensions Service, an arm’s-length body of government, provides free, impartial guidance to consumers at every stage of their financial lives. More widely, the Government are taking steps to improve financial education. In November, we set out our plans for all school children in England to receive financial education. This reflects the Government’s wider commitment to financial literacy and building a population better able to make informed decisions about financial products.

I hope I have hit all the questions. If I have not done so, we will go through Hansard and get back to noble Lords about what perhaps we have missed out.

Barnett Formula: Wales

Debate between Baroness Kramer and Lord Wilson of Sedgefield

Wednesday 12th November 2025 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

I thank my noble friend for that question. I like to think that all the avenues of approach he has mentioned will be looked at and discussed at the ministerial meeting at the beginning of next year. It is also important to point out that there is direct funding to Wales, which includes 160,000 workers in Wales who have benefited from a direct pay rise due to the increase in the minimum wage and the national living wage.

[Baroness Kramer (LD)]

My Lords, each of the four nations operates a different and independent NHS computer system, which means that doctors struggle to get information on cross-border patients in England and Wales. Will the Government now recognise the seriousness of this issue and adapt the Barnett formula, which stands in the way of providing the funding to remedy this situation?

[Lord Wilson of Sedgefield (Lab)]

The noble Baroness raises a very important issue, and I hope it is something that the ministerial meeting at the beginning of next year will look at. I like to think that all aspects of the Barnett formula, including the issues that the noble Baroness has raised, will be looked at in the round, because obviously we want to see efficiency in all our public departments.

Public/Private Partnerships: Shares

Debate between Baroness Kramer and Lord Wilson of Sedgefield

Monday 3rd November 2025 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

I agree with the noble Lord and accept his point of view. There have been a lot of benefits from public/private partnerships in the past—they have invested in many schools and hospitals, where pupils and patients have benefited—but we need to look at how we reform public/private partnerships and make them fit for the future. Obviously, the National Infrastructure and Service Transformation Authority, which was set up in 2020, has a great part to play in that.

[Baroness Kramer (LD)]

My Lords, first, we on these Benches join in the commiserations with the noble Lord, Lord Livermore. Does the Minister agree that for a successful PPP, in addition to the key point made by the noble Lord, Lord Forsyth, not only is an educated public sector negotiator is required but clearly defined projects that will not undergo variances, and financing, in essence, set out up front and not used as a back-end bargaining tool? Does he agree that these and the other lessons that we learned before mean that there are relatively few projects that will meet the criteria for a public/private partnership?

[Lord Wilson of Sedgefield (Lab)]

We will look at public/private partnerships in the future. We are looking at them in a limited way for neighbourhood health centres, for example, and public estate decontamination projects, but we need certainty over future funding, which is why we have committed over the next decade at least £725 billion of investment in infrastructure so that we can ensure growth.

Planning and Infrastructure Bill

Debate between Baroness Kramer and Lord Wilson of Sedgefield

Report stage
Monday 20th October 2025 Lords Chamber

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

My Lords, Amendment 22, tabled by the noble Baroness, Lady Kramer, proposes that the National Infrastructure and Service Transformation Authority—NISTA—be given a new responsibility to receive, assess, investigate where appropriate and oversee whistleblowing disclosures related to nationally significant infrastructure projects. The amendment seeks to ensure appropriate protection for whistleblowers and co-ordination with relevant regulators and planning authorities.

I am grateful to the noble Baroness for raising this important issue and have listened carefully to her remarks. While I recognise the intention behind the amendment, I must say again that I do not share the view that there is evidence of whistleblowing being a current, widespread concern within the NSIP regime. As she will know, there is already a well-established framework of prescribed persons and bodies to whom whistleblowers may turn, independent of their employer, as provided for under the Employment Rights Act 1996. They include organisations covering areas such as environmental protection, health and safety, transport, utilities and local government, which are of direct relevance to NSIPs.

Adding NISTA to this list would duplicate existing functions already carried out by regulators, such as the Environment Agency, which have the appropriate expertise and statutory powers. Given this existing framework, we believe that adding another body to the list would create a duplication of roles and, in any event, would not require primary legislation to achieve, as new persons or bodies can already be prescribed through Section 43F of the Employment Rights Act 1996. In the light of this, I respectfully invite the noble Baroness to withdraw her amendment.

[Baroness Kramer (LD)]

My Lords, I am saddened by the Government’s response. The next time we have a major project and there is a major scandal, they will have to take ownership of it. They looked at the framework that delivered us the problems on HS2. The names of the whistleblowers are now public: Doug Thornton and others reported that financials had been distorted, misrepresented and covered up, which delayed the making of a series of appropriate decisions on HS2. In the end, they were fundamental in requiring the truncation of what had been a much larger scheme. Crossrail is a similar example. Until about eight weeks before it was due to open, nobody in political decision-making knew that the project had fallen into deep trouble. It ended up being delayed by four years and was £4 billion over budget. This is repeated again and again. We have had similar problems with Hinkley Point and many other projects. That is what the current framework, which the Minister defends, actually delivers.

If the nettle is not grasped, we will see the same experiences again. Even if it is in only 10% of the projects that are anticipated for the future and that will be relevant to the growth agenda, the consequences will be significant. The existing framework, no matter what it says on paper, has demonstrated that it is unfit. Look at the Post Office scandal, the contaminated blood scandal, the issues in the NHS, the PPI scandal and the series of financial scandals—the framework does not work.

I ask the Minister to take the issue away, speak with some of his colleagues and see what can be done to make sure that, at least within the context of infrastructure, there is an effective channel that works. It must provide protection for whistleblowers in a real way, not just on paper, and lead to the necessary investigations. Given that, I beg leave to withdraw my amendment.

Child Trust Fund Accounts

Debate between Baroness Kramer and Lord Wilson of Sedgefield

Wednesday 19th March 2025 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

We know that there are real difficulties with this, and cross-departmental activities are taking place to try to resolve the problem. I understand from the courts that the Government are committed to bearing down on the outstanding caseload left by the previous Government, and the challenges we face in doing so are significant. As a crucial first step, we are funding another 108,500 sitting days in the courts this financial year, which is the highest level we have had for a decade.

[Baroness Kramer (LD)]

My Lords, in cases where a parent or guardian were unable to set up an account for their child, the Government opened a savings account on the child’s behalf. Can the Minister give me an assurance that all these children, for whom HMRC must have both contact details and legal authority, have been reached and are not part of the group who are unaware of the funds they have available?

[Lord Wilson of Sedgefield (Lab)]

All young people who have trust funds are contacted at the age of 17, and those who do not respond will be continually contacted. Secondly, the funds available to them will be available for ever or until, potentially, things change; but at the moment, there is no reason why that should happen. Those funds will be there for as long as they need to be, before they are drawn down by the child. The one thing to remember is the funds not having been accessed does not mean that the person who can access them does not know they are there.