Labour Party Wins UK Election, What It Means For Crypto?
Highlights
- The departure of crypto-friendly MPs like Lisa Cameron may lead to a lack of crypto advocacy.
- The newly elected Labour government might need time to understand the crypto landscape.
- Labour Party manifesto talked about pro-economic measures without mentioning crypto explicitly.
The Labour Party has registered a landslide victory in the UK general elections while ousting Rishi Sunak’s conservative party from office for the first time in 14 years. UK’s crypto community is eagerly waiting as to what’s in store for them regarding the regulatory policy and other decisions.
Will Keir Starmer Bring Crypto-Friendly Policies
Keir Starmer is set to take oath as the new UK Prime Minister after Rishi Sunak resigns from the office. Speaking on his victory, Starmer said:
“Tonight people here and around the country have spoken, and they’re ready for change. The change begins right here.”
We expect the change to come to the UK’s local crypto market as well. Alike the United States, crypto firms in the UK have been facing the brunt of unclear regulatory policies which have held them back from undertaking major decisions.
The former Conservative government was preparing to undertake regulatory steps for crypto this month in July. However, newly elected Prime Minister Keir Starmer might take more time to grasp the country’s crypto landscape.
The departure of crypto-friendly MPs, such as Lisa Cameron, may result in a shortage of advocacy within the government. Even if the Labour Party shows a positive approach towards crypto, the community is awaiting more concrete commitments from the government. The UK voters have already shared their concerns in this regard.
Traditional market players like WisdomTree are also making a move by filing crypto ETPs earlier in May.
Also Read: Revolut Unveils UK Crypto Exchange Amid Digital Asset Surge
Will the Labour Party Follow The US’s Footsteps in Crypto Decisions?
Unlike what we’re seeing in the US, crypto wasn’t at the center stage of debates in the current UK elections. Laura Navaratnam, U.K. policy lead at the Crypto Council for Innovation, said That the Labour Party’s manifesto “referenced a kind of pro-competition environment”.
“It talked about the role of regulators, but all in a broader context. So still, nothing on crypto. But on the plus side, they haven’t said anything negative either,” she added.
Some market analysts also said that the Labour Party would be working on documents on how to adopt the central bank digital currencies (CBDCs) or securities tokenization.
As the crypto landscape is taking a turn for the good in the U.S., other top economies including the UK, will be watching how the US pivots on crypto policy after the 2024 Presidential election. Former President Donald Trump has already shown his intentions to support Bitcoin and the broader crypto market.
Also Read: US Lawmaker French Hill Doubles Down On Trump’s Pro-Crypto Stance
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