The upcoming general election in the United Kingdom, scheduled for July, could delay the implementation of crypto regulations by several months, according to CryptoUK. Regardless of whether the Conservative Party remains in power or the Labour Party takes control, the House of Commons will be in recess until July 4, followed by the party conference season.

British Prime Minister Rishi Sunak is required to call a general election before January 2025 but has opted to hold it in July. This timing is expected to push back the introduction of crypto policies under the Financial Services and Markets Act. CryptoUK Board Advisor Ian Taylor, speaking at the Consensus conference in Austin on May 30, expressed concerns that the election would likely delay the regulatory framework for cryptocurrencies and stablecoins initially planned for July.

"It's not great," said Taylor regarding the delay in U.K. crypto policy. "Asia and Europe are way ahead of the game."

The election could result in a shift in party control, potentially impacting future crypto policies. The Conservative Party has governed the U.K. since 2010, but polls indicate the Labour Party, led by Keir Starmer, could win the upcoming election. Taylor noted that while a new government might deprioritize crypto, the current stance of both major parties has been supportive of the sector.

The summer recess and party conference season mean that significant progress on crypto regulation is unlikely until later in the year. The House of Commons will be in recess from May 30 to July 4 and during much of September and October. According to Taylor, this schedule suggests that substantial regulatory activity may not resume for months.

Unlike the Conservative Party, Labour has made few public statements about digital assets. Pro-crypto Conservative MP Lisa Cameron, who served from 2015 to 2024, announced she would not stand in the upcoming election, adding further uncertainty to the future of crypto regulation in the U.K.

Meanwhile, in the United States, the debate over cryptocurrencies and central bank digital currencies is becoming increasingly politicized as the 2024 presidential election approaches. The likely candidates are current President Joe Biden and convicted felon Donald Trump, with the election set for November 5, coinciding with Guy Fawkes Day.