The Conservatives, who have introduced several pro-crypto policies in recent years, are expected to lose hundreds of seats in the UK elections on July 4.

Cryptocurrency has taken a prominent role in the U.S. presidential campaign, with Donald Trump cozying up to Bitcoin enthusiasts. However, in Britain, where voters will soon head to the polls, digital assets haven’t been a primary focus for candidates.

It arguably should be. The latest data from the Financial Conduct Authority shows that 9% of U.K. adults owned crypto in August 2021, equivalent to almost five million people. Given the recent bull market, these numbers are likely understated.

Despite this, there is some gentle lobbying behind the scenes. Prime Minister Rishi Sunak and his Conservative Party have repeatedly spoken about their ambition for the U.K. to become a “global cryptoasset hub.” However, they are trailing in the polls after a challenging campaign. One prediction model suggests the Tories have less than a 1% chance of being elected on July 4.

Due to this, businesses in the crypto industry are now trying to appeal to Labour, who are leading in the polls and likely to win. Some progress has already been made. In January, before the current campaign began, shadow chancellor Rachel Reeves, who would become finance minister if Labour wins, attended a breakfast in Davos hosted by Coinbase.

The next Labour government will work with the tech sector to bring jobs and prosperity to Britain.

Once the campaign for Number 10 started, Coinbase expanded its Stand With Crypto campaign to the U.K. Initially launched as an American initiative to engage the crypto community in the legislative process, a high-profile launch event was held in the House of Commons last month. It was attended by government ministers and senior members of the Labour team.

This initiative was followed by a seven-point plan, described as a “manifesto,” to help the U.K. become a global leader in fintech, digital assets, and tokenization. Key policy recommendations for the next government include:

  • Welcoming fintech, Web3, and crypto firms to do business in Britain
  • Establishing a comprehensive regulatory framework for crypto assets
  • Delivering regulatory clarity on staking
  • Understanding how decentralization could revolutionize the economy
  • Encouraging all departments to embrace blockchains for more efficient public services
  • Launching a tokenization strategy for the City of London
  • Updating Britain’s legal frameworks for digital assets

Other groups, including the U.S.-based Crypto Council for Innovation, are seeking clarity on existing regulations that have proven challenging for their members, as well as a path to a broader regulatory regime.

Despite these ambitions, it’s unclear how much of a priority this would be for Sir Keir Starmer if he becomes the next Prime Minister. Last month, he stated that his most urgent first steps would include imposing strict spending rules, establishing a state-owned energy firm, reducing health service waiting lists, clamping down on smuggling gangs, and hiring more police officers and teachers.

A pressing concern for many crypto investors and businesses in Britain is whether Labour would reverse some of the friendlier policies introduced during Rishi Sunak’s tenure. While the Tories had promised to finalize stablecoin legislation before Parliament broke for the summer, this proposal has been paused due to the election. Will this be canceled under new management?

The Crypto Council for Innovation remains optimistic. It stated:

Starmer appears to be a considered and focused leader who is not expected to unpick the Conservatives’ work on crypto simply on principle. This makes it more likely that large pieces of legislation, like those related to stablecoins, will continue. Additionally, the FCA is independent and retains its staff irrespective of any change in government.

The council sees a new government as an opportunity for the crypto sector, especially since valuable contacts could be made among newly elected MPs. However, with a significant loss expected for the Tories, some of the industry’s most dependable supporters in London may be left unemployed.

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