What Keir Starmer’s Election Victory Could Mean for Crypto in the UK
A recent Coinbase event highlighted the increasing closeness between crypto lobbyists and the Labour Party.
- Crypto lobbyists see potential influence opportunities with Labour, targeting key figures like Rachel Reeves and Tulip Siddiq.
- The Labour Party recognizes that tokenized securities could become a $4 trillion market by 2030.
- While Starmer’s views on crypto remain unknown, Tulip Saddiq is known to want to restore London as a financial hub.
The Labour Party’s landslide victory will make Keir Starmer the prime minister. Starmer has yet to share his views on crypto, and the Party’s plans on crypto-related topics remain minimally outlined.
According to CoinDesk, the Conservative Party had a clearer stance on crypto, but with the Labour Party’s dominance, there remains significant uncertainty about the future of crypto in the UK.
The Labour Party’s perspective on crypto-related topics is detailed in its 28-page financial services plan, which includes the following points:
- Development of real-world asset (RWA) tokenization or securities tokenization.
- Creation of a central bank digital currency (CBDC).
- Providing regulatory sandboxes for testing financial products.
- Becoming a global standard-setter for the use of AI in financial services.
The Labour Party’s View on Crypto
The Labour Party’s report predicts that tokenized financial assets could reach $4 trillion globally by 2030. They plan to use regulatory sandboxes and explore pilot issuing tokenized gilts via the Debt Management Office to advance this.
The Labour Party supports a state-backed digital pound, prioritizing protection against threats to privacy, financial inclusion, and stability. They cite Ghana, India, and the UAE as successful models for regulatory sandboxes and plan to develop a post-sandbox roadmap to help participants launch their financial products.
Additionally, Labour seeks to set AI standards in financial services, producing accessible and affordable financial guidance tools with robust consumer protections, noting that 90% of financial institutions use AI for fraud prevention.
Room for Crypto Lobbyists to Influence Decisions
deVere Group CEO Nigel Green sent an email to The Block revealing Keir Starmer’s potential stance, highlighting his support for developing real-world asset (RWA) tokenization and creating a central bank digital currency (CBDC). With limited views and plans on crypto, this provides room for crypto lobbyists to potentially guide the UK government under the Labour Party.
A Bloomberg report shows crypto companies investing in the Labour Party, with Coinbase’s event highlighting this trend. Laura Navaratnam from the Crypto Council for Innovation said Labour’s stance on crypto is still unclear and that it’s possible that the Party itself doesn’t know “what they think yet.”
Crypto lobbyists are also targeting key figures like Rachel Reeves and Tulip Siddiq, who aims to restore London as a financial hub. The Labour Party’s minimal details on crypto plans leave room for various possibilities.
