Regulation
Results of French elections in hung parliament raise questions about cryptocurrency regulation
Summary
- France’s general election ended with a deadlocked parliament, with no party or coalition winning an absolute majority.
- The New Popular Front, a left-wing coalition, won the most seats with 188, followed by President Macron’s Ensemble with 161 seats and Marine Le Pen’s Rassemblement National with 141 seats.
- The lack of a majority could make it more difficult to pass new laws, including those on cryptocurrencies.
- Prime Minister Gabriel Attal is expected to resign and Macron will have to choose a new prime minister.
- This outcome could have an impact on France’s domestic and international politics, including its stance on cryptocurrencies and digital assets.
France’s recent general election resulted in a deadlocked parliament, a rare occurrence in modern French politics that could have far-reaching implications for the country’s governance. including its approach to cryptocurrency regulations.
The elections, held on Sunday, saw the New Popular Front, a coalition of left-wing parties, emerge as the largest bloc with 188 seats in the 577-seat National Assembly.
However, this number is significantly lower than the 289 seats needed for an absolute majority. President Emmanuel Macron’s centrist Ensemble alliance secured 161 seats, while Marine Le Pen’s far-right National Rally made substantial gains, winning 141 seats.
The unexpected outcome has created an unfamiliar political landscape in France, which usually sees a clear majority emerge in its parliament. The absence of a dominant party or coalition will likely complicate the process of forming a new government and passing legislation.
Prime Minister Gabriel Attal, of Macron’s Renaissance party, has announced his intention to resign, leaving the president with the difficult task of appointing a new prime minister capable of navigating the fragmented political landscape.
The implications of this hung parliament go beyond domestic politics. Mark Foster, EU policy officer at the Crypto Council for Innovation, suggests that the new parliamentary composition could make domestic policy development, including cryptocurrency and digital asset regulation, more uncertain and difficult.
France has made great strides in the cryptocurrency space, registering 74 cryptocurrency companies last year, with expectations of reaching 100. The country has also been actively trying to attract more digital asset companies. However, the current political situation could slow down or complicate these efforts.
The election results come at a crucial time for cryptocurrency regulation in France and the European Union as a whole. EU Markets in Crypto Asset (MiCA) rules on stablecoins began implementation in late June, with the rest of the cryptocurrency rules set to come into effect by the end of the year. Political uncertainty in France could potentially impact the implementation and enforcement of these regulations.
The suspended parliament also raises questions about France’s influence on the international stage, particularly within the European Union and in global economic forums. As the EU’s second-largest economy and a key player in international diplomacy, any political instability in France could have ripple effects beyond its borders.
For the cryptocurrency industry, this political shift in France adds another layer of complexity to an already evolving regulatory landscape. While France has been relatively welcoming to cryptocurrency activity, the new political reality could lead to a period of political uncertainty.
The election outcome also reflects broader trends in European politics, with traditional centrist parties losing ground to left-wing and far-right movements. This shift could affect how European nations approach emerging technologies and financial innovations such as cryptocurrencies.