Keir Starmer, the Most Unexpected Supporter of the UK Crypto Sector? Reasons Why the UK Has Suddenly Emerged as a Surprising Contender for Crypto Investment

A week after Donald Trump’s groundbreaking second visit to the UK, with a new £150Bn deal potentially in play, Keir Starmer could be emerging as an unexpected supporter of the UK crypto sector.

Although Keir Starmer didn’t campaign on a crypto agenda, recent transatlantic policymaking has placed the British prime minister as an unforeseen catalyst for the industry’s upcoming growth, intriguingly aligned with the America-first, rapid-innovation crypto spirit epitomized by Elon Musk.

If the UK government acts decisively, it can transform regulatory uncertainty into a competitive advantage and harness capital that is currently bouncing between New York, Dubai, and Singapore.

The driving force behind this change is structural rather than rhetorical. London and Washington have established the Transatlantic Taskforce for Markets of the Future, co-chaired by the US Treasury and HM Treasury, to provide short- to medium-term recommendations on digital assets, stablecoins, and the digitization of wholesale markets within 180 days.

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This marks the first significant endeavor by the two financial powerhouses to synchronize crypto regulations and ease complexities around cross-border listings, custody, and capital acquisition.

For issuers and trading market participants, this indicates a route toward clarity regarding dual-jurisdiction for tokenized securities, ETF infrastructure, and stablecoin reserves, all areas where fragmentation has hindered institutional involvement.

Starmer’s capacity for action expanded further when the UK and US entered into a broader technology memorandum regarding AI and advanced energy valued at £150Bn.

The political optics might be mundane; however, the market implication is significant. A unified technology industrial policy tempers the controversy surrounding crypto’s cultural baggage. It repositions digital assets as vital infrastructure, systems for settlement, collateral, and programmability that complement AI in national competitiveness strategies.

Simultaneously, US policy has shifted toward accommodation: a stablecoin law is now in effect; the SEC has streamlined the process for digital-asset ETFs; and the White House is leveraging executive power to broaden regulatory sandboxes. This generates a synchronizing opportunity that London can seize.

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Is Keir Starmer Poised to Navigate a New Direction for UK Crypto Policy?

On the home front, developments are underway. The Financial Conduct Authority has reduced the average crypto registration timeline by about two-thirds since the challenges of 2024, although approvals still remain selective, with many firms delaying applications in anticipation of a more comprehensive legislative framework.

The FCA has initiated a consultation on minimum standards tailored specifically for crypto platforms and has controversially proposed limited exemptions from certain legacy conduct “Principles” to accommodate business models that do not align neatly with MiFID-era expectations.

Coupled with HM Treasury’s commitment to regulate under the Financial Services and Markets Act framework rather than replicating an EU-style MiCA framework, the UK is progressing toward a pragmatic, common-law-based structure that may better suit tokenized collateral, on-chain fund distribution, and 24/7 market operations.

The timing is advantageous. US spot ETFs for Bitcoin and Ethereum have standardized institutional engagement, while the introduction of US-listed DOGE and XRP ETFs expands product offerings and crypto holder interest.

A transatlantic agreement on disclosures, surveillance-sharing, and custody segregation would enable UK venues to list comparable products without reinventing existing frameworks, allowing British issuers to access US buyer interest for tokenized treasuries, private credit, and money-market instruments.

For capital in Musk’s domain—VCs, corporations, and available volume providers seeking favorable jurisdictions—an agile UK framework combined with US interoperability delivers the precise “don’t fight City Hall” message that mitigates deployment risks.

Nevertheless, successful execution is essential. The historical rejection rate from the FCA, driven by failures related to AML and operational resilience, will continue to be a hindrance unless the registration process becomes more transparent, better supported, and demonstrably consistent.

The government must also reconcile consumer security objectives with the realities of market structures, where high volatility and non-custodial interfaces are inherent aspects, rather than flaws.

Moreover, attention to continental factors cannot be overlooked: France is pushing to limit MiCA “passporting,” and several EU regulators are advocating for ESMA to directly oversee major crypto entities—developments that could either steer activity toward London or complicate equivalence discussions if the UK diverges too significantly.

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How Can Starmer Secure a Quick Victory in UK Crypto Policy?

First, establish firm deadlines for the taskforce’s deliverables and commit to executing any mutual “lowest-friction” recommendations on custody, crypto market abuse, and stablecoin reserve audits.

Second, legislate an efficient authorization system that converts current registrations into full permissions without subjecting firms to redundant procedures.

Third, implement a UK-US pilot for tokenized gilts and treasuries with interoperable settlement options and reciprocal routes for digital-asset ETFs. This initiative would rapidly attract market fluidity to London.

Finally, this plan should also be accompanied by visible action against scams and insufficient compliance to uphold consumer security standards.

Achieve these steps, and the UK may cease to be a bystander in a market it was instrumental in creating.

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The article Keir Starmer, UK Crypto Industry’s Most Unlikely Ally? Why the UK Just Became Crypto’s Dark-Horse Bet was originally published on 99Bitcoins.