With Labour consistently leading the polls since Liz Truss’s brief and turbulent tenure as prime minister last fall, the crypto lobby is gearing up for a potential political shift.
As per the latest Bloomberg report, crypto companies in the United Kingdom have been increasingly warming up to the lawmakers from the Labour Party, considering their large and consistent lead in the polls. With Prime Minister Rishi Sunak calling for a snap election on July 4, there’s some uncertainty hanging over the crypto community of the UK. The Labour Party hasn’t been in power ever since 2010 when the Bitcoin price was trading for less than a dollar.
“Everyone is trying to guess what Starmer’s approach to crypto regulation will be if Labour wins,” said Laura Navaratnam, UK policy lead at the Crypto Council for Innovation. “It’s quite possible that Labour themselves haven’t decided yet.”
Cryptocurrencies are taking center stage in the US and UK elections this year as the community seeks to appoint more crypto-friendly lawmakers who can help in better policy framing for the crypto industry. In the US, the crypto industry is pulling up major donations to crypto-friendly candidates. On the other hand, the UK’s crypto community is warming up to Starmer and the party he leads.
Sunak’s Inaction Makes Him the Less-Preferred Choice
While the UK is a major market for some of the biggest crypto firms like Coinbase, the country has been slow in introducing regulatory measures.
This comes despite a 2022 pledge by Sunak, shortly before becoming prime minister, to make the UK a key hub for the crypto sector. Since then, the European Union has adopted comprehensive crypto legislation, and rival financial centers such as Hong Kong and Dubai have introduced new regulations.
On the other hand, the UK relies largely on a patchwork of crypto rules as enforced by the Financial Conduct Authority (FCA). By the end of the year, the FCA will publish its first draft of its crypto licensing regime.
With Labour consistently leading the polls since Liz Truss’s brief and turbulent tenure as prime minister last fall, the crypto lobby is gearing up for a potential political shift. In October, the trade group CryptoUK hosted its inaugural event at the annual Labour Conference in Liverpool. Two months later, Coinbase launched its Stand With Crypto lobbying program in Manchester, a traditional Labour stronghold.
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