The United Kingdom witnessed a seismic political shift as the Labour Party triumphed in the general election, bringing an end to 14 years of Conservative governance. This sweeping victory will see Keir Starmer ascend to the role of Prime Minister, accompanied by a legislative agenda that remains ambiguous regarding cryptocurrency regulation.

Labour decisively surpassed the 326-seat threshold needed for a majority, with BBC reporting a commanding 410 seats as of 8:30 a.m. British Summer Time (7:30 UTC) Friday. The Conservative Party, commonly referred to as the Tories, was relegated to 119 seats. Notably, neither Labour nor the Conservatives addressed the cryptocurrency sector in their election manifestos, focusing instead on broader issues such as the economy, law enforcement, and the National Health Service.

Conservatives’ Crypto Stance and Labour’s Unclear Position

The Conservative Party’s approach to cryptocurrency, honed over years of governance, is more transparent. They aspired to position the UK as a cryptocurrency hub, enacting legislation to regulate crypto activities and consulting on future regulations, including stablecoin guidelines. Bim Afolami, who served as Economic Secretary under outgoing Prime Minister Rishi Sunak, was a familiar presence at fintech conferences, assuring the industry of forthcoming secondary legislation for stablecoins.

Conversely, Labour’s stance on cryptocurrency remains undefined. The party has, however, expressed support for the Bank of England’s plans for a digital pound. The central bank will decide on the issuance of this central bank digital currency (CBDC) between 2025 and 2026, pending parliamentary approval of the necessary legislation.

Read more: Can Regulators Control Bitcoin’s Finite Supply? Exploring Policy Options and Challenges.

Starmer’s Vision and Transition of Power

In his victory speech early Friday, Starmer proclaimed, “Change begins now.” He emphasized the Labour Party’s transformation and readiness to govern, stating, “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.”

Outgoing Prime Minister Rishi Sunak conceded gracefully, acknowledging the electorate’s decision. “The British people have delivered a sobering verdict tonight,” he remarked, congratulating Starmer on his victory.

As Labour steps into power, the cryptocurrency community and market participants will keenly observe how the new administration shapes its policy towards digital assets. With the Bank of England’s digital pound on the horizon and a legislative framework yet to be defined, the coming months will be crucial in determining the UK’s position in the evolving global crypto landscape.