In a remarkable turn of events, the **Labour Party** has emerged as the dominant force in the **United Kingdom’s government**, securing a commanding majority with a victory on **July 4**. Despite the party’s leadership not traditionally focusing on cryptocurrency and blockchain technology, sector proponents are urging the new administration to build upon the foundations laid by the previous Conservative government.
The latest tallies from the July 5 elections reveal that Labour has clinched **412 seats** out of 650 in the **House of Commons**, relegating the Conservatives to a projected **122 seats**—a significant reduction of around 250 seats, effectively ending their reign. In the wake of these developments, the erstwhile Prime Minister and leader of the Conservative Party, **Rishi Sunak**, has stepped down, paving the way for Labour’s **Keir Starmer** to assume the role of Prime Minister.
Courtesy of:
**The British Royal Family**
The Future of Cryptocurrency:
Prior to the election proclamation, the U.K. had been on the cusp of unveiling a **regulatory framework** for cryptocurrencies and payment stablecoins, anticipated in July. However, insiders speculate that these plans may now face delays of several months, given the parliamentary recess post-announcement and another hiatus slated for summer, preceding the autumnal party conference season.
“The political terrain of the U.K. has undoubtedly shifted, yet we anticipate that for the cryptocurrency domain, it will be predominantly status quo,” remarked **Bivu Das**, the U.K. managing director for the cryptocurrency exchange **Kraken**. “This is a golden opportunity for the incoming government to propel innovation and expansion within this nascent asset class, further cementing the U.K.’s stature as a frontrunner in blockchain innovation.”
In the same vein, **Keld van Schreven**, co-founder and managing director of the digital asset investment firm **KR1**, noted that this change in leadership arrives at a critical juncture for the crypto industry.
Starmer’s Executive Team:
The Prime Minister-in-waiting, Starmer, has already appointed several Members of Parliament to his cabinet, notably **Rachel Reeves** as the **Chancellor of the Exchequer**, a pivotal role for the nation’s financial and economic agenda. At this juncture, Starmer has yet to reveal his choice for **Economic Secretary to the Treasury**, a decision that could significantly influence the new government’s approach to digital assets.
A representative from the self-regulatory body **CryptoUK** expressed that the organization has forged robust ties with Labour Party members. The association is advocating for the new government to prioritize clear and proactive policymaking for the cryptocurrency industry, which currently lacks a comprehensive strategic direction.
In the Press:
Is a financial crisis looming over the cryptocurrency market’s bullish trend?