On 12 September 2024, the Property (Digital Assets etc) Bill was published, along with explanatory notes.
The Bill, which had its first reading in the House of Lords on 11 September 2024, provides that something may be capable of attracting property rights even if does not fit into either of the two categories of personal property that have traditionally been recognised under the law of England and Wales (i.e. things in possession and things in action).
The Law Commission had previously (in 2023) recommended that legislation should be passed to confirm that a thing will not be deprived of legal status as an object of personal property rights merely by reason of the fact that it is neither a thing in possession nor a thing in action. This Bill gives effect to that recommendation.
Commenting on the Bill, the Parliamentary Under-Secretary of State for Justice, Lord Ponsonby, said that:
- Providing certainty over legal issues around digital assets will encourage the use of English and Welsh law in internationally mobile transactions.
- He accepts the second recommendation by the Law Commission to set up an expert group on control of digital assets, and the Ministry of Justice has asked the UK Jurisdiction Taskforce (UKJT) to take forward this work.
- The Law Commission’s report made recommendations to make statutory amendments to the Financial Collateral Arrangements Regulations and to set up a multi-disciplinary project to formulate a statutory framework for the entering into, operation and enforcement of certain crypto-token and cryptoasset collateral arrangements – HM Treasury are reviewing these recommendations and will provide an update “in due course”.
A date has not yet been set for a second reading of the Bill.