The recent French election results suggest a more polarized parliament, creating uncertainty for crypto policy development. Mark Foster, the EU policy lead at the Crypto Council for Innovation, shared insights on this evolving situation.
Election Results and Political Shift
Marine Le Pen’s far-right National Rally (RN) party led the first round of voting in France’s surprising general election. According to the Ministry of Interior, RN secured about 19% of the vote. The opposition Union of the Left followed with 18.19%, and Ensemble, including President Emmanuel Macron’s Renaissance party, came in third with 13.02%.
Impact on Macron and Legislation
These results reflect RN’s previous success in the European Parliament elections, prompting Macron to call this election. Despite the outcome, Macron has no plans to resign. However, if his party fails to secure a 289-seat majority, passing legislation will become more challenging.
Mark Foster commented, “It’s difficult to predict next week’s events, but Macron’s gamble seems to have backfired. He hoped RN wouldn’t perform as well as they did in the European elections, but they actually scored higher. The new parliament will likely have larger far-left and far-right contingents, complicating domestic policy development, including crypto and digital assets.”
National Rally’s Agenda
National Rally, led by Jordan Bardella and Marine Le Pen, aims to cut EU funding, reduce immigration, remove birthright citizenship, and expel foreign offenders. The party has faced accusations of fostering xenophobia and anti-Semitism, according to Britannica.com.
The first election round eliminates candidates scoring less than 12.5% of the vote. The second round, on July 7, will determine winners from the remaining candidates in each constituency.
France’s Progress in Crypto
Despite political turmoil, France has made significant progress in crypto regulation. Last year, France registered 74 crypto companies, with expectations to reach 100. Regulators are working to attract more businesses.
The European Union’s Markets in Crypto Asset (MiCA) legislation, a comprehensive crypto package including stablecoin measures, passed last year. While stablecoin rules are already in effect, the rest of the legislation will be enforced by year-end. France’s existing regulations provide a head start in implementing MiCA.
Conclusion
The new, more polarized parliament in France introduces uncertainty for crypto policy development. With far-left and far-right contingents growing, the legislative process for crypto and other policies may face significant challenges. However, France’s progress in crypto regulation and the upcoming MiCA implementation could provide a stable foundation for the future.