Summary — The Property (Digital Assets etc.) Act 2025 has received Royal Assent, formally making cryptocurrencies, stablecoins and similar digital-assets eligible to be treated as personal property under UK law. The Act clarifies for the first time at the statutory level what many courts had recognized under common law — that digital assets can constitute property, giving owners clear legal rights over them.
What the law does — and why it matters
- The Act establishes that a “thing” — including one that is digital or electronic — is not excluded from being personal property merely because it doesn’t fit one of the traditional categories under English and Welsh law (“things in possession” or “things in action”).
- In effect, this creates a third category of personal property, which can accommodate crypto-tokens, non-fungible tokens (NFTs), stablecoins, and other digital-only assets that previously existed in a legal grey area.
- By doing so, the law gives owners of digital assets clearer and more robust legal protections — for example, in cases of theft, fraud, insolvency, inheritance disputes, claims by creditors, or use of digital assets as security for loans.
The legislative journey: from bill to Act
- The legislation began as the Property (Digital Assets etc.) Bill, first introduced to the House of Lords on 11 September 2024.
- On 8 May 2025, the Bill passed its third reading in the Lords.
- After amendments — including extending its territorial scope to Northern Ireland — the Bill was sent to the House of Commons, which approved it in November 2025, paving the way for Royal Assent and its formal enactment as statute.
- As a result, the Act will apply across England, Wales, and Northern Ireland. Scotland is not included under this Act — but has its own separate consultation and legislative process regarding digital-asset property rights under Scots law.
Reaction & implications from industry and legal community
- Legal and crypto-industry organisations have broadly welcomed the change. The Act “removes residual legal uncertainty” around digital-asset ownership and ensures that crypto-holders have the same protections as traditional asset owners under property law.
- A recent ruling by the High Court of Justice for England and Wales — which held that a major stablecoin qualifies as property — highlights the kind of legal disputes and protections this law formalizes.
- For holders of cryptocurrencies, stablecoins, NFTs or other digital tokens, this offers stronger protection in events such as theft, insolvency, or inheritance, and could foster greater institutional acceptance and use of digital assets.
What the law does not do — and open questions
- The Act does not automatically designate all digital assets as personal property. It does not define specific types of tokens or assets that qualify. Whether a given token or asset qualifies will depend on its characteristics and will be determined by courts applying existing common-law tests.
- The law also does not impose regulatory rules on crypto trading, custody, taxation, or stablecoin issuance — those remain subject to separate regulatory regimes.
- In particular, if a token is used as a stablecoin or payment instrument, separate regulations may apply under financial regulatory law; the Act only addresses private-law property status.
Why this matters — both for UK and global crypto ecosystem
The enactment of the Property (Digital Assets etc.) Act 2025 represents a major milestone in aligning traditional legal frameworks with the realities of digital-asset ownership. By granting digital-assets a path to recognized property status, the UK sets a precedent for:
- Greater legal certainty around ownership and transfer of crypto and digital assets.
- More robust protections for individuals and institutions holding digital assets — including rights to recover or reclaim them in disputes.
- Encouraging further institutional adoption, investment, and innovation in crypto, stablecoins, NFTs and related technologies — backed by a stable and responsive legal foundation.
- Potentially influencing other jurisdictions to modernize their property laws to reflect evolving financial technologies — accelerating global acceptance of crypto as a legitimate asset class with legal standing.
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