An internal review of the campaign called it a “high speed car crash”, and some questioned whether the party could ever have the impact it once had on the electorate again.
But skip to 2023, with Sir Ed Davey at the helm and the party’s first autumn conference since that fateful year – COVID and the Queen’s death led to the others being cancelled – and there is an audible buzz of positivity coming from its members.
With four by-election wins since the start of this parliament, ripping safe seats from the Conservatives, a stonkingly good performance at last year’s locals, and a general election on the horizon, Oxford West and Abingdon MP, Layla Moran, says: “We are really buoyant as a party, and with all those wins, the first thing we will be doing at conference is celebrating!
“This could be the last conference before the next general election (which is expected in 2024). We are confident going into the election, but confident does not mean complacent.
“We have a winning formula that has worked with winning seats in both local and by-elections. We will take that forward but with zero complacency.”
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Lib Dems: ‘Get these clowns out of No 10!’
Her fellow Lib Dem MP, Christine Jardine, who represents Edinburgh West, agrees, saying there is “excitement” in the air.
“Momentum is the right word, but also optimism,” she adds. “We have four new MPs, hundreds of new councillors, and 16 new councils. It shows we have moved on from 2019 and we are in a very different place.
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“This could be the start of something.”
For anything to get started, however, the Lib Dems need to agree on a policy programme.
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“I grew up in a family with three daughters,” she said. “There were four women in the house and that got expensive!
“We need to be thinking of those issues, we need to be looking at how we look after people, not just those who are in a cost of living crisis now, but also those who are just managing – as they stop managing when these economic issues hit.”
Image: Lib Dem MPs Christine Jardine (left) and Layla Moran (right)
And, despite its impact on their last national results, the topic of Brexit will still be on the agenda, with Ms Moran saying the party hadn’t “lost its roots”.
“Well, the discussion is not about ‘Brexit’ as that’s the past,” she adds. “But the country is in a total state and you have to think about the economy, so you have to think about fixing that broken relationship with the EU.”
She says the Lib Dems have a four-part plan, “starting with the low hanging fruit like rejoining Europol and schemes like Erasmus”, then “when the timing is right”, bringing up the prospect of the single market again.
“It is not off the table,” says Ms Moran. “We want to be at the heart of Europe, that’s not changed.”
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Lib Dem Leader on wet wipe ban
However, the “golden thread” running throughout conference will be about one service in particular – the NHS.
A senior party source revealed the “centrepiece policy” would be the legal right to see a GP within seven days.
This isn’t a new idea for the party, but it will be the first time it has been formally adopted in the manifesto.
So, why the NHS? Because the Lib Dems think voters in the seats they are targeting are feeling the impact of health service pressures like never before.
“30 years ago, when we knocked on doors in Tory seats, we spoke about the economy or crime,” said a source close to Sir Ed.
“But 30 years ago, the NHS was just about working in those more rural areas, and struggling in more urban, Labour seats.
“If you go into those rural areas now, the local NHS services have been depleted so much – for those trying to get a GP appointment, those trying to get an ambulance to show up, the fear of ending up on a cancer waiting list.
The Lib Dems came second in 91 seats at the last election, and 80 of those saw them come second to the Tories, with many in the so-called “Blue Wall” – the term used to describe safe Conservative seats across the south of England.
The leadership thinks they can “take a bite” out of those seats, especially by focusing on the current government’s track record when it comes to the NHS, holding a “Blue Wall summit” on Friday to welcome their marginal candidates to conference to talk tactics.
“We are key to getting the Tories out,” said a senior party source. “We want to capitalise on that – focusing on the seats where we came second in the Blue Wall.
“And we will talk a lot about the Blue Wall at conference, as well as showing off our rising stars in the party that are running in those seats.”
One person hoping to benefit from that election machine is Josh Babarinde, the Lib Dem prospective parliamentary candidate for Eastbourne.
“We run on volunteers, so what is exciting about this conference is getting together our army of activists, who don’t have masses of billionaire donors propping them up, and firing them up,” he said.
“The momentum is building and building and building. We had a bruising result in Eastbourne in the 2019 election, now people are coming into the office wanting to take to the streets and campaign for the election. The country hasn’t seen anything yet.”
Image: The Lib Dems are determined to smash through the ‘Blue Wall’
But all this “optimism” and “excitement” appears to have its limits.
Just over 10 years ago, the Lib Dems were the kingmakers, the party who decided the next prime minister and secured themselves senior positions at the top of government.
Yet, ask MPs, strategists or members if they are aiming for power again and every answer is either a deflection or laced with trepidation.
“Ed feels strongly that so many leaders in the past got distracted by thinking about [government] without thinking about winning those seats,” said a source close to the leader.
“It creates an atmosphere of anticipation and then we don’t focus and don’t try to win seats.”
The party has already ruled out going into coalition with the Conservatives again – a decision that saw the party collapse electorally at the 2015 election and put off many of the voters that their former leader, Sir Nick Clegg, recruited.
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Starmer refuses to rule out Lib Dem deal
“Ed fears if we start to talk about coalition, it looks as though we are taking those voters we are trying to win over for granted,” adds the source.
“We want to focus on being local champions fighting for local services.
“And remember, we won 11 seats at the last general election. There is nothing for us to be arrogant about.”
As members start to gather on the south coast, a statement from deputy leader Daisy Cooper tells them this conference will “fire the starting pistol” on the next election campaign and get activists ready for the fight.
“Our horizons are broader than when we went in for the Chesham and Amersham by-election (the first of the Lib Dem wins in this parliament),” said the source close to Sir Ed.
“Journalists laughed at me when I said we could win that seat, now they laugh at me if I say we might not win Mid Beds (the safe Tory seat left empty by the exit of Nadine Dorries).”
But while this conference is set to be one of the most positive gatherings for the Lib Dems in years, there is still a mountain to climb to get the numbers in parliament to make an impact – and a residual fear around what doing well at the next election may mean for the party’s future.
The long-awaited Digital Asset Market Clarity Act, or CLARITY Act, is moving closer to law, with a Senate markup expected in January, says White House artificial intelligence and crypto czar David Sacks.
Sacks posted to X on Thursday that Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman had confirmed that the bipartisan crypto bill will be shaped up by the Senate next month.
”We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for. We look forward to finishing the job in January!”
The CLARITY Act would define crypto securities and commodities and clarify the roles of the Securities and Exchange Commission, the Commodity Futures Trading Commission, and other financial regulators.
Backers of the bill say it will reduce regulatory uncertainty for crypto firms by establishing clearer compliance pathways and encourage innovation while strengthening investor protections.
Movement of the CLARITY Act has been slower than expected, with Senator Cynthia Lummis having predicted in September that the CLARITY Act would get to President Donald Trump’s desk for his signature before the end of 2025.
The delays have largely been attributed to the record 43-day US government shutdown across October and November. However, US regulators met with executives from Coinbase, Ripple, Circle and others during that time to ensure the momentum of the bill didn’t stall.
Sacks’ post had confirmed earlier reports that the Senate markup would be pushed into the new year.
The House passed the CLARITY Act in July, and the Senate markup will debate and potentially amend the bill before it’s sent to the full chamber for a vote.
Scott will have to tackle passing the bill with a supermajority of votes to avoid it being forever stalled and essentially abandoned.
If the Senate passes it with amendments, the bill will return to the House for final approval before reaching Trump’s desk.
Representatives of the Bitcoin Policy Institute (BPI), a nonprofit Bitcoin advocacy organization, warned that US lawmakers have not included a de minimis tax exemption for Bitcoin transactions below a certain threshold.
“De Minimis tax legislation may be limited to only stablecoins, leaving everyday Bitcoin transactions without an exemption,” Conner Brown, BPI’s head of strategy, said on X, adding that the decision to exclude Bitcoin (BTC) is a “severe mistake.”
In July, Wyoming Senator Cynthia Lummis introduced a bill proposing a de minimis tax exemption for crypto transactions of $300 or less, with a $5,000 annual limit on tax-free transactions and sales.
The bill proposal also included tax exemptions for digital assets used for charitable donations and tax deferment for crypto earned through mining proof-of-work (PoW) protocols or staking to secure blockchain networks.
Allowing a tax exemption for small Bitcoin transactions would increase its use as a medium of exchange rather than just as a store of value asset, allowing a new financial system built on a Bitcoin standard, BTC advocates say.
The discussion around de minimis tax exemptions has also raised questions about whether such relief should apply to stablecoins, which are designed to maintain a stable value.
“Why would you even need a De Minimis tax exemption for stablecoins,” Marty Bent, founder of media company Truth for The Commoner (TFTC), wrote on X. “They don’t change in value. This is nonsensical.”
Cointelegraph reached out to BPI about the proposed legislation, but had not received a response at time of publication.
Bitcoin is gaining value, but it isn’t being used as peer-to-peer electronic cash
The Bitcoin white paper, authored by its pseudonymous creator Satoshi Nakamoto in 2019, describes Bitcoin as a “peer-to-peer electronic cash system.”
However, relatively high transaction fees, average block times of about 10 minutes, and capital gains taxes on Bitcoin stifle BTC’s use as a payment method for goods and services.
The Bitcoin Lightning Network is a second-layer protocol designed for BTC payments, which works by locking a specific amount of BTC in a payment channel between two or more people.
Users connected through a payment channel can conduct multiple transactions offchain, with only the final net balance recorded on the Bitcoin ledger for settlement once the channel is closed.
This makes Bitcoin transactions faster and cheaper, as the users in the payment channel do not have to wait for new blocks to be mined or pay a network fee for each transaction between parties in the channel.
A US court is once again being asked to weigh in on maximal extractable value practices after a judge allowed new evidence to be added to a class-action lawsuit tied to a memecoin platform.
The judge granted a motion to amend and refile to include new evidence a class-action lawsuit against memecoin launch platform Pump.fun, the maximal extractable value (MEV) infrastructure company Jito Labs, the Solana Foundation, which is the nonprofit organization behind the Solana ecosystem, and others.
The motion said over 5,000 pieces of evidence in the form of internal chat logs were submitted by a “confidential informant” in September that were previously unavailable. The filing said:
“Plaintiffs assert that the logs contain contemporaneous discussions among Pump.fun, Solana Labs, Jito Labs, and others concerning the alleged scheme, and that they materially clarify the enterprise’s management, coordination, and communications.”
The first page of the motion to amend the case to include new evidence, which was granted. Source: Burwick Law
Maximal extractable value is a technique that involves reordering transactions within a block to maximize profit for MEV arbitrageurs and validators.
The plaintiffs allege that Pump.fun used MEV techniques to give insiders preferential access to new tokens at a low value, which were then pumped and dumped onto retail participants, who were used as exit liquidity by insiders.
Cointelegraph reached out to Burwick Law, the legal firm representing the plaintiffs, as well as Pump.fun, Jito Labs and the Solana Foundation, but did not receive any responses by the time of publication.
The allegations in the original lawsuit filing. Source: Burwick Law
The lawsuit could set a precedent for MEV cases in the United States, as the ethics of the practice continue to be debated within the crypto industry and legal bodies struggle to define proper regulations about the highly technical subject.
Anton and James Peraire-Bueno, the brothers accused of using a MEV trading bot to make millions of dollars in profit, went to trial in November in the US.
Prosecutors argued that the brothers tricked victims out of their funds, but defense attorneys said that they were executing a legitimate trading strategy and did not do anything illegal.
The jury struggled to reach a verdict in the case, and several jurors requested additional information to clarify the complexities surrounding the technical specifics of blockchain technology.
The case ended in a mistrial after the jury was deadlocked and failed to reach a verdict, highlighting the complexity of adjudicating legal disputes surrounding the application of nascent financial technology.