With the UK elections on the horizon does the Labour Party consider cryptocurrency a key issue

The Conservative Party, renowned for its recent pro-cryptocurrency policies, faces a significant setback as the UK heads into elections on July 4. While crypto has been a pivotal issue in the US presidential campaign, with Donald Trump aligning himself closely with Bitcoin advocates, British candidates have largely sidestepped discussions on digital assets.

This lack of attention might be considered a missed opportunity. Recent data from the Financial Conduct Authority indicates that 9% of UK adults owned cryptocurrency as of August 2021, amounting to nearly five million individuals. Given the recent bullish trends in the market, these numbers are likely underestimated.

Behind the scenes, there has been subtle lobbying efforts. Prime Minister Rishi Sunak and the Conservative Party have repeatedly expressed their vision for the UK to emerge as a global hub for cryptoassets. Despite this, their electoral prospects appear grim, with forecasts suggesting less than a 1% chance of victory, according to a model by The Economist.

As a result, crypto industry leaders are redirecting their efforts towards the Labour Party, currently leading in the polls and poised to take control of Downing Street. This strategic shift has already seen some progress. Earlier this year, before the campaign season began, shadow chancellor Rachel Reeves attended a breakfast hosted by Coinbase at Davos, hinting at potential future collaboration if Labour takes power.

Coinbase further solidified its stance with the Stand With Crypto campaign in the UK, originally launched in the US to mobilize the crypto community in legislative affairs. A high-profile launch event at the House of Commons garnered attention from government officials and senior Labour members eyeing leadership roles.

This initiative was accompanied by a detailed manifesto outlining a seven-point plan aimed at positioning the UK as a leader in fintech, digital assets, and tokenization. Key recommendations include welcoming fintech firms, establishing a comprehensive regulatory framework for crypto assets, and exploring the potential of blockchain technology in public services.

While these ambitions are lofty, their priority under a potential Labour government led by Sir Keir Starmer remains uncertain. Starmer has outlined immediate priorities such as fiscal discipline, nationalizing energy services, reducing healthcare waiting lists, combatting smuggling, and boosting police and education sectors.

For the crypto community in Britain, a pressing concern is whether Labour would reverse the favorable policies implemented under Rishi Sunak’s tenure. The fate of stablecoin legislation, for instance, remains uncertain pending election results.

Despite these uncertainties, the Crypto Council for Innovation remains optimistic, viewing the election as an opportunity to forge new relationships with incoming MPs. However, with predictions of substantial losses for the Conservatives, formerly stalwart allies of the crypto industry in London may find themselves sidelined.

In summary, while crypto policies have gained momentum under the Conservatives, the impending election could usher in significant changes, potentially impacting the regulatory landscape and industry dynamics in the UK.