The Labour Party secured a decisive victory in the UK general election, ending 14 years of Conservative rule. Keir Starmer is set to become Prime Minister, leading a legislative agenda that leaves the direction of cryptocurrency regulation uncertain. Labour won well over the 326 seats needed for a majority, with the BBC reporting 412 seats secured as of Friday morning. The Conservatives were relegated to 121 seats with two results still pending. Both parties did not highlight the crypto industry in their manifestos, focusing on the economy, police, and the National Health Service.

Conservative Crypto Legacy

The outgoing Conservative government had aimed to position the UK as a crypto hub. They enacted legislation to regulate crypto as an activity and consulted on plans, including stablecoin rules. Bim Afolami, the former Economic Secretary, had been active in fintech conferences, promising secondary legislation for stablecoins. Labour, meanwhile, has expressed support for the Bank of England’s digital pound plans, with a decision on the central bank digital currency (CBDC) expected between 2025 and 2026. Parliament will need to approve the necessary legislation before its implementation.

Starmer’s Victory Speech and Future Plans

In his victory speech, Starmer emphasized Labour’s readiness to serve the country and restore Britain for working people. “Change begins now,” he declared, highlighting the party’s four and a half years of preparation. Outgoing Prime Minister Rishi Sunak conceded, acknowledging the British people’s verdict and announcing his resignation as Conservative leader.

Labour’s Financial Services Vision

Earlier this year, Labour released a plan for financial services, aiming to make the UK a hub for securities tokenization by clarifying the law around digital asset representation on the blockchain. Crypto community members see the potential for Labour to advance the regulations identified by the previous government and enhance guidance on promotional materials.

Calls for Proactive Policy-Making

Jordan Wain, UK policy lead at Chainalysis, emphasized that much of the critical work has been done by government departments, not the parties themselves. CryptoUK, a lobby group, called Labour to prioritize proactive policy-making to harness the sector’s potential for job creation, economic growth, and inclusivity. Despite its potential, a comprehensive strategy for the UK’s crypto and digital assets industry remains elusive.