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Select Committee · Treasury Committee

The crypto-asset industry

Status: Closed Opened: 12 Jul 2022 Closed: 11 Mar 2024 12 recommendations 6 conclusions 2 reports

In this inquiry, the Treasury Committee will examine the potential risks and opportunities associated with the use of crypto-assets, their impact on social inclusivity and the possible need for regulatory change in the future. Read the call for evidence to find out more about the inquiry

Clear

Reports

2 reports
Title HC No. Published Items Response
First Report - The digital pound: still a solution in searc… HC 215 2 Dec 2023 13 Responded
Fifteenth Report - Regulating Crypto HC 615 17 May 2023 5 Responded

Recommendations & Conclusions

3 items
5 Conclusion Fifteenth Report - Regulating Crypto Accepted in Part

Unbacked cryptoassets pose significant consumer risks, resembling gambling more than financial services.

Regardless of the regulatory regime, their price volatility and absence of intrinsic value means that unbacked cryptoassets will inevitably pose significant risks to consumers. Furthermore, consumer speculation in unbacked cryptoassets more closely resembles gambling than it does a financial service. We are concerned that regulating retail trading and investment activity …

Government response. The government acknowledges concerns about consumer risks and the 'halo effect' in unbacked cryptoassets, stating it has implemented robust measures to ensure consumers understand the high risks involved, while maintaining its financial services regulatory approach.
HM Treasury
9 Recommendation First Report - The digital pound: still… Accepted in Part

Ensure continued support for physical cash and improve digital literacy for financial inclusion.

The Government and Bank of England must resist the temptation to believe that a digital pound can fix problems it can’t, however, and a digital pound must not make financial exclusion worse. There is a risk that the introduction of a digital pound accelerates the demise of physical cash, causing …

Government response. The government states a digital pound would complement cash and references its 2023 legislation giving the FCA powers to protect access to cash, with a new regulatory framework expected by summer 2024, but does not address digital literacy or universal …
HM Treasury
11 Recommendation First Report - The digital pound: still… Accepted in Part

Report digital pound expenditure as a separate line item in Bank of England annual accounts.

The Bank of England has already incurred significant costs from its work on a digital pound, and its further work on the design of a digital pound will require increased expenditure in the coming years. It is important that the Bank of England and Treasury keep control of these costs …

Government response. The Bank acknowledges the request for transparency on digital pound costs, stating it currently reports CBDC costs within its broader fintech work, and will consider the appropriate future reporting mechanism.
HM Treasury

Correspondence

6 letters
DateDirectionTitle
25 Jan 2024 — Correspondence from HM Treasury and the Bank of England, in response to the Com…
1 Jun 2023 — Correspondence from the Chancellor of the Exchequer regarding Commitment on Cen…
25 Apr 2023 — Correspondence from the Bank of England, relating to the session on ‘The crypto…
25 Apr 2023 — Correspondence from the Chair to the Bank of England, relating to the session o…
26 Jan 2023 — Correspondence from the FCA relating to the session on ‘The crypto-asset indust…
16 Nov 2022 — Correspondence from Binance, relating to the session on ‘The crypto-asset indus…