UK: Property (Digital Assets etc) Bill set to become law

Why should I read this?

If your business uses or operates blockchain technology, holds or trades in stablecoins, crypto or other digital assets, the Property (Digital Assets etc) Bill (Bill) marks a key shift in how digital assets are treated. It introduces a third category of personal property: digital assets, including cryptocurrencies and stablecoins.

This change is intended to give digital assets a clearer legal status. It could also help the UK attract more investment and strengthen its position as a global hub for digital finance.

The Bill completed its second reading in the House of Lords on July 16, 2025. Now is the time to take steps to align your operations with the new framework. For background on the Law Commission’s recommendations and the rationale behind the Bill, see our previous briefing.

What should I do?

• Review your contracts to explicitly account for digital assets as property. This will help avoid uncertainty in ownership or enforcement.
• Update ownership, transfer and dispute resolution clauses to reflect their new legal status. Adjust contract terms to reflect that digital assets now have property rights. For fintech firms, this might mean using crypto as collateral in loan agreements.
• Blockchain businesses are encouraged to audit their systems to make sure digital assets can be tracked and passed on properly.
• Crypto firms should review how digital assets are stored and insured. Make sure protections are in place in case of theft, loss or technical failure.

What else do I need to know?

The Bill’s flexibility is intended to allow courts to develop rules on a case-by-case basis. This will enable the law to evolve in step with technological changes.

It could also lead to practical changes across financial and tech sectors. Fintech firms are likely to gain confidence in developing new tokenized financial products, such as stablecoins or asset-backed securities, which could improve how capital moves across borders. Blockchain platforms might gain clearer legal support for smart contracts and decentralized tools, helping with supply chain and data-related processes. In crypto, legal recognition of digital assets may attract institutional investors and make it easier to connect with traditional finance systems.

These developments sit within the UK’s wider Financial Services Growth and Competitiveness Strategy. That includes the Digital Securities Sandbox, stablecoin regulation and plans for a digital pound.

Courts have also been shaping the legal landscape. The High Court has consistently accepted that digital assets (while not fitting into traditional categories) can be treated as property. In last year’s first UK crypto-asset trial, D’Aloia v Persons Unknown and others [2024], the High Court examined the nature of crypto-assets and found that they can attract property rights under English law, specifically referencing the Bill. This supports the Bill’s aim to clarify that property rights may apply even where assets fall outside existing definitions. See our previous briefing for detail on the case.

Some see the Bill as formalizing current practice. But it also marks a shift. It lays the groundwork for legal clarity and commercial use of digital assets. It will not need to be the subject of costly legal argument, at least on the question of whether they represent property. Courts will shape how it works in practice, but the direction is clear: the UK is preparing for a future where digital assets are part of the mainstream.

For insights on how the Bill enhances digital asset recovery in disputes, look out for our next briefing.

Further reading on the Digital Assets Bill

• England and Wales: Property (Digital Assets Etc) Bill 2024
• English High Court confirms that crypto-assets are capable of constituting property

How Eversheds Sutherland can help

Eversheds Sutherland’s Global Crypto Assets practice comprises leading practitioners in the areas of financial regulation, technology and payment services with experience in shaping market standards in the crypto industry (both CeFi and DeFi) and navigating through the still developing legal and regulatory framework around products. This includes the categorization/regulatory classification of tokens and the implication this has on the legal framework around the exchange, transfer or custody of those tokens. We have been involved in a number of large-scale open banking projects employing DLT systems as well as advising governments, regulators and industry associations on drafting regulation and setting standards for various aspects around DLT use cases and business models, mostly in financial markets and services. These projects often include innovative forms of cooperation between regulated financial services providers and tech providers across several jurisdictions.