Today, the United Kingdom introduced a bill to Parliament that would create a new category of personal property for non-fungible tokens, cryptocurrencies, and tokenized real-world assets (RWAs).
The bill intends to clarify the legal status of digital assets by recognizing them as personal property under British law, as well as help judges and lawyers determine ownership in the event of a dispute such as a divorce.
If the bill is passed, it will recognize NFTs, cryptocurrencies, and digital carbon credits as personal property. Furthermore, it provides guidelines to protect individuals and companies against scams and frauds in the sector.
Specifically, the bill adds a new category of property to the existing two categories: “things in possession” (money, cars, homes) and “things in action” (debt, stocks). The new category, “thing,” grants personal property rights to particular digital assets.
The Law Commission behind the bill wrote that while digital assets are “neither things in possession nor things in action,” the law will treat “them as capable of being things to which personal property rights can relate.”
The move comes after a 2023 report from the Law Commission which assessed some of the pros and cons of recognizing digital assets as property under English law. If the new bill becomes law, it would make the U.K. one of the first countries to recognize digital assets as property, potentially paving the way for Britain to become a leader in the space.
Crypto Regulation Around the World
If you’ve been in the Web3 space for any time at all, then you already know it moves fast. But one thing that isn’t known for its blistering pace is government regulation. Over the years, governments around the world have been slow to catch up with evolving technologies like NFTs and crypto.
In the U.S., for example, the SEC and its head Gary Gensler have not only failed to provide clear regulations for the sector, they’ve sued dozens of individuals and Web3 companies. The hostile environment has even forced some companies to move elsewhere where they can operate more freely.
However, it does appear that the mood around crypto and digitals assets is starting to change, and that government agencies are recognizing the importance of providing clear regulatory framework. In the U.S., part of the shift in tune can be attributed to presidential candidate Donald Trump, who not only said that he’d “fire Gary Gensler on day one,” he’s also released several Web3 projects himself.
Here’s a brief review of Trump’s moves in crypto over the past month:
- Trump released his fourth NFT collection, the ‘America First Edition.’
- A financial disclosure report showed Trump holds over $1M in Ethereum.
- Trump released a limited set of “Bitcoin Sneakers” that say “Trump: Crypto President.” They sold out in minutes.
- Trump said if elected, he will make the U.S. the “crypto capital of the planet.”
While the U.S. gears up for a tight election in November, many in the crypto space are hoping Trump finds his way to the top. But regardless of the outcome, it’s becoming clear that countries will need to take a stance on crypto and digital assets or risk being left behind. The latest news from the U.K. is more evidence of that fact.