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Starmer's Resignation Freezes UK Crypto Rulemaking
Sterling slipped below $1.32 after Starmer resigned. The political vacuum stalls UK crypto regulation as MiCA advances in Europe. Polymarket saw $2M in bets on the timing.
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Keir Starmer resigned as UK prime minister and Labour Party leader, barely two years after taking office. Sterling slipped 0.2% against the dollar, falling below $1.32, while 10-year gilt yields ticked up one basis point to 4.85%. The moves were modest. Traders said the political vacuum creates a specific risk for digital asset policy.
Starmer's government had started building a crypto framework. In March 2026, it imposed a temporary ban on crypto donations to political parties, citing traceability concerns. The City Minister, Tulip Siddiq, who oversaw financial services policy including digital assets, resigned in January 2025. That left the crypto portfolio without a dedicated champion inside the Treasury.
The UK has not passed comprehensive digital asset legislation. The European Union's MiCA framework is rolling out across the continent, giving crypto businesses a single rulebook. Britain's approach remains piecemeal. The BoE finalised stablecoin rules in early 2026, dropping ownership caps and easing reserve requirements. Broader regulation for trading platforms, custody, and staking is still in consultation. BoE Final Stablecoin Rules Drop Ownership Caps, Ease Reserve Rules