The UK’s recent general election saw Labour returning to power after 14 years, with Sir Keir Starmer securing a massive majority. This election outcome has significant implications for the country’s crypto industry, as Rishi Sunak’s administration, known for championing digital assets, is now out of power. With 300 new MPs joining the Commons, the crypto industry has lost valuable contacts in Westminster, leaving only unelected members in the All-Party Parliamentary Group on crypto and digital assets.
Despite hopes for a pro-crypto stance from Labour, there was little evidence during the 2024 election campaign that either Labour or the Conservatives prioritized the sector. The focus was largely on pressing issues like the cost-of-living crisis, leaving little room for discussion on crypto. With Sir Keir Starmer as the new prime minister, there are uncertainties about his government’s stance on digital assets, as Labour’s manifesto did not include any specific policies on crypto.
Following Labour’s victory, the British crypto community remains cautious in its response, with few willing to publicly comment on the political situation. This hesitation may be due to concerns about misjudging the new government’s direction or the complicated political landscape. While little is known about Labour’s crypto policies, industry stakeholders urge the incoming government to prioritize regulatory clarity and proactive policymaking to foster growth and innovation in the sector.
Despite the change in government, the crypto industry is not starting from scratch, as Labour has previously shown some interest in supporting the tech sector. Notable figures within the party have expressed support for Web3 and blockchain technology, offering a glimpse of potential avenues for collaboration between the government and the crypto sector. However, the exact strategies and policies that Labour will adopt remain uncertain, leaving stakeholders hopeful for innovation-friendly regulation and governmental support for entrepreneurs navigating the evolving regulatory landscape.
With the ousted Conservative MPs now seeking new opportunities in the private sector, some may find their way into the crypto industry, following in the footsteps of former chancellor Philip Hammond. However, with the Tories significantly weakened in Parliament, their influence on policy decisions related to crypto may diminish. As the UK grapples with multiple challenges, such as a struggling economy and ongoing geopolitical crises, the fate of crypto under Sir Keir Starmer’s administration remains to be seen, with the sector likely taking a backseat to more pressing issues.
