Labour Landslide Sets Up Starmer as UK Prime Minister With Unstated Crypto Plans

The Labour Party won Thursday’s U.K. general election with a landslide that ended 14 years of Conservative rule and will install Keir Starmer as prime minister with a legislative program that leaves the direction of crypto regulation unclear.

Labour won well over the 326 seats needed for a majority, with BBC reporting it held 412 seats as of 11:19 British Summer Time (10:19 UTC) Friday, relegating the Tories – as the Conservative Party is known – to 121 with two results still to be declared. Neither party mentioned the crypto industry in their manifestos in the lead-up to the election. Labour concentrated on the economy, police and the National Health Service.

Labour, for its part, has said it will support the Bank of England’s digital pound plans. A decision on whether to issue the central bank digital currency (CBDC) will be taken by the bank in 2025-2026. Before that happens, the Parliament will need to approve the appropriate legislation.

“Four and a half years of work, changing the party, this is what it is for: a changed Labour Party ready to serve our country, ready to restore Britain to the service of working people,” he said.

Rachel Reeves will take over as Chancellor of the Exchequer, meaning she will head the country’s Treasury department.

“The Labour Party has won this general election and I have called Keir Starmer to congratulate him,” Sunak said in a concession speech early Friday. “The British people have delivered a sobering verdict tonight.”

“A lot of the really important work has been done and it’s not been done by the parties themselves, it’s been done by government departments,” Jordan Wain, U.K. policy lead at Chainalysis, told CoinDesk in an earlier interview. “It’s been done by the FCA [Financial Conduct Authority], they’re the ones that are formulating legislation. They are not going to sweep all of that hard work off the table, it’s not going anywhere.”

Crypto UK a lobby group that often met with regulators and ministers, advocating for the crypto community during the Tory reign, said it also has ties to members of the incoming government.

“As the landscape evolves rapidly, CryptoUK calls on Labour to prioritise clarity and proactive policy-making to fully harness our sector’s potential,” a spokesperson said in an emailed statement. “Despite the industry’s potential to drive job creation, economic growth and increased inclusivity, 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, statement from Crypto UK in last paragraph.

UPDATE (July 5, 16:30 UTC): Adds Rachel Reeves is the new Chancellor.