The Conservative Party, known for its favorable stance on cryptocurrency, faces a significant setback as it anticipates losing hundreds of seats in the upcoming UK elections on July 4. While crypto has gained attention in the US presidential campaign, with Donald Trump aligning himself with Bitcoin enthusiasts, the British electoral landscape has seen little emphasis on digital assets.
However, recent data from the Financial Conduct Authority reveals that 9% of UK adults owned crypto as of August 2021, totaling nearly five million individuals. This figure likely grew during the recent bullish market trends. Despite this, crypto hasn’t featured prominently in the UK campaign discourse.
Prime Minister Rishi Sunak and his Conservative Party have expressed ambitions for the UK to emerge as a global hub for cryptoassets. Despite these aspirations, the Conservatives are trailing in polls, with predictions suggesting they have less than a 1% chance of retaining power on July 4. Consequently, crypto industry leaders are now courting the Labour Party, which leads in polls and is expected to secure Downing Street.
Signs of progress include shadow chancellor Rachel Reeves’ attendance at a Coinbase-hosted breakfast in Davos earlier this year, indicating early moves towards building rapport with Labour. Coinbase escalated its engagement by launching its Stand With Crypto campaign in the UK, initially an American initiative aimed at mobilizing the crypto community in legislative processes. This campaign was recently introduced in the House of Commons and garnered attendance from government ministers and senior Labour figures.
Coinbase’s efforts coincide with a detailed manifesto outlining a seven-point plan to position the UK as a global leader in fintech, digital assets, and tokenization. Key proposals for the next government include fostering a welcoming environment for fintech firms, establishing comprehensive regulatory frameworks for crypto assets, and exploring the transformative potential of decentralization and blockchain technology across public services.
Meanwhile, groups like the Crypto Council for Innovation are advocating for regulatory clarity amidst existing challenges, viewing the upcoming election as an opportunity to strengthen relationships with newly elected MPs. However, uncertainty looms over whether Labour will uphold the crypto-friendly policies championed by the Conservatives, particularly regarding stablecoin legislation that was postponed due to the election.
Despite the optimism within the crypto sector, the expected electoral losses for the Conservatives—potentially reducing their seats from 376 to as few as 80—suggests that some of crypto’s staunchest allies in London may face an uncertain future.