The Financial Services and Markets Bill (FSMB), which proposes the regulation of stablecoins and cryptocurrencies in the UK, has received approval from the House of Lords, the second chamber of the Houses of Parliament. Initially focused on stablecoins, the bill was later expanded to encompass all cryptocurrencies and regulated activities.

The UK government is progressing with the FSMB in an effort to bolster cryptocurrency adoption within the country. The bill, aimed at fortifying the national financial services industry, has garnered support from numerous members of the UK parliament’s House of Lords. After its third reading in the House of Lords and approval from the House of Commons, the bill is now entering its final stages: Consideration of Amendments and Royal Assent.

The Consideration of Amendments is a final review of the bill by both Houses, during which the House of Commons may propose any necessary amendments, and the House of Lords can either approve or disapprove these changes. After several exchanges, both houses will reach an agreement. The Royal Assent occurs when the UK King formally agrees to enact the FSMB as a law.

The FSMB was initially introduced to the UK Parliament in July 2022 with the aim of ensuring Great Britain’s standing in the financial world. As the bill progressed through parliament, it was expanded to include the supervision of cryptocurrency promotions.

In April, the Economic Secretary to the Treasury, Andrew Griffith, indicated that Britain could introduce specific laws regulating the crypto industry within a year. The UK has expressed its ambition to become a hub for cryptocurrency firms, with UK Prime Minister Rishi Sunak aspiring to make the country a “global hub for cryptoasset technology”. According to Griffith, the UK will integrate existing and new regulations.