Part 1: Regulatory Framework Digital settlement assets Section 23: Digital settlement assets: power to make regulations
Subsection (3)(a) to (i) gives HM Treasury the power to make regulations to regulate payments that include digital settlement assets.
	Subsections (3)(a) to (e) clarifies the nature of legislative provisions that HM Treasury may enact in pursuance of that aim. Subsection (3)(b) provides that the power includes the power to apply, and amend, existing legislation on insolvency arrangements (including administration, restructuring and similar procedures – as provided for in (1)(c) to apply appropriately for digital settlement assets used in payments. Subsection (3)(c) confers powers on HM Treasury to legislate, which will be relevant when amending primary legislation to include regulation making powers with respect to digital settlement assets. These are intended to bring digital settlement assets within the existing legislative perimeter of payments and electronic money regime, address regulatory overlaps and amend the application of existing SARs to cater for digital settlement asset features and operations.
	Subsection (4) allows HM Treasury to make provision for creating offences punishable on summary conviction with respect to digital settlement assets. This could include expanding existing criminal offences that apply to existing authorised payment institutions and authorised electronic money institutions under the EMR 2011 and PSR 2017 to apply to digital settlement assets.
	Subsection (5) clarifies that the power to make such regulations includes the power to modify legislation (which under section 80(1) includes the power to amend, repeal or revoke existing legislation). For instance, this could be relevant where HM Treasury needs to amend existing legislation, such as the EMR 2011, to apply to digital settlement assets.
	Subsections (7) and (9) to (12) sets out the procedure in which such legislation may be made and confirms that such regulations made under these provisions will be subject to the affirmative procedure or if urgent, that the "made affirmative" procedure be used. This procedure could be relevant if HM Treasury needs to react urgently to developments within the cryptoasset market. Subsection (8) imposes the requirement on HM Treasury to consult with the regulators before laying draft regulations under this power.
	Subsection (13) is self-explanatory.