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Labour leader Keir Starmer to become next UK prime minister with unclear crypto plans
The Labour Party won the UK general election on Thursday in a landslide victory, ending 14 years of Conservative rule and will install Keir Starmer as prime minister with a legislative agenda that leaves the direction of cryptocurrency regulation uncertain.
The Labour Party won more than the 326 seats needed for a majority, with BBC report It had 412 seats as of 11:19 a.m. British Summer Time (10:19 UTC) on Friday, relegating the Tories — as the Conservative Party is known — to 121 with two results yet to be declared. Neither party mentioned the cryptocurrency industry in their manifestos in the run-up to the election. Labour has focused on the economy, policing and the National Health Service.
The Labour Party, for its part, said it would support the Bank of England’s initiative. digital libra plans. A decision on whether or not to issue a central bank digital currency (CBDC) will be made by the bank in 2025-2026. Before that happens, Parliament will need to pass the appropriate legislation.
“Four and a half years of work, changing the party, that’s what it’s for: a transformed Labour Party, ready to serve our country, ready to return Britain to serving working people,” he said.
Rachel Reeves will take over as Chancellor of the Exchequer, which means she will head the country’s Treasury department.
“Labour won this general election and I called Keir Starmer to congratulate him,” Sunak said in a concession speech early Friday. “The British people have delivered a worrying verdict tonight.”
“A lot of the really important work has been done and it hasn’t been done by the parties themselves, it’s been done by government departments,” Jordan Wain, UK policy lead at Chainalysis, told CoinDesk in a previous interview. “It’s been done by the FCA.” [Financial Conduct Authority]They’re the ones who are formulating the legislation. They’re not going to sweep all that hard work off the table, it’s not going anywhere.”
Crypto UK, a lobby group that frequently met with regulators and ministers, advocating for the cryptocurrency community during the Conservative government, said it also has ties to members of the new government.
“As the landscape rapidly evolves, CryptoUK calls on the Labour Party to prioritise clarity and proactive policymaking to fully realise the potential of our sector,” a spokesperson said in an emailed statement. “Despite the industry’s potential to drive job creation, economic growth and increased inclusion, a comprehensive strategy for the UK’s crypto and digital assets industry remains elusive.”
UPDATE (July 5, 07:40 UTC): Updates seat count in second paragraph.
UPDATE (July 5, 10:48 UTC): Updates seat count, adds Sunak’s resignation in eighth paragraph and Crypto UK statement in last paragraph.
UPDATE (July 5, 16:30 UTC): Adds that Rachel Reeves is the new chancellor.