Local elections 2024: ‘Truly historic’: Labour pulling off strong results with shock in Tory stronghold – as council elections show Brexit shift
Labour has won control of a string of Leave-voting councils as results begin to roll in from the local elections across England and Wales.
The party seized control of Rushmoor in Hampshire from the Conservatives shortly after 3am – a council the Tories had run for the last 24 years – with a spokesman calling the result “truly historic”.
Come 5am, they had also taken Redditch in the West Midlands, turning a Conservative majority of five into a Labour majority of 15.
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Labour also took Hartlepool Council – the scene of a major by-election loss back in 2021, which led Sir Keir Starmer to consider quitting as leader – and Thurrock in Essex, from no overall control, saying it was “exactly the kind of place we need to be winning to gain a majority in a general election”.
And the party replaced the Tories as the largest party on Peterborough Council which, while remaining under no overall control, saw the Conservatives lose 13 of the 16 seats they were defending.
Meanwhile, the Conservatives lost control of North East Lincolnshire after Labour won five of the seats up for grabs – with neither party now holding a majority on the council.
All six areas overwhelmingly voted Leave in the 2016 Brexit referendum, with Thurrock supporting it by 72.3%, North East Lincolnshire by 69.9%, Hartlepool by 69.6%, Redditch by 62.3%, Peterborough by 60.9% and Rushmoor by 58.2%.
However, Labour lost seats in some of its more traditional areas where there is a high Muslim population, such as Newcastle, with critics putting the failures down to the party’s positioning on the conflict in Gaza.
In other important developments:
• Labour held on to Sunderland Council
• It also kept control of South Tyneside, Chorley and Newcastle
• The Greens won a number of seats from Labour in Newcastle
• Carla Denyer, Green co-leader, said Labour lost support over Gaza
• The Tories held on to other councils in Hertfordshire, Hampshire and Essex
More than 2,600 council seats across 107 councils were up for grabs in England, alongside 11 mayoral elections, a parliamentary seat and police and crime commissioners throughout England and Wales – with many of the results still coming in.
But early signs show Labour is winning back seats in areas it lost over the Brexit debate, as well as making gains in traditionally Tory voting councils.
Read more:
Labour gains new MP with Blackpool by-election win
‘People crying out for change’ – Labour
Shadow environment secretary Steve Reed told Sky News that while it was “early days”, the results so far were showing positive signs for Labour come the next general election.
“These are not polls,” he said. “These are people getting off their backsides, going out of their homes, into a polling station, putting a cross on a party that they want to govern their local area.
“People are crying out for change. I know that from speaking to people on the doorsteps and tonight, it looks like people around the country are voting for change.”
But while Tory MP James Daly said he “fully accepts” the loss of these councils, he insisted to Sky News his party could “still win in parts of the country where historically Labour have dominated” – including in Teeside, where Conservative Lord Houchen is defending his mayoralty.
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‘A good night for Labour’
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Tories better some predictions but Lib Dems ‘buoyed’
The Conservatives bucked predictions in Harlow in Essex where it managed to keep control of the council – although its majority fell from 11 to one, and Labour gained five seats.
The party also held on to Broxbourne Council in Hertfordshire – an authority it has run for its entire 52-year history – and Fareham in Hampshire, though in the latter the Liberal Democrats picked up four seats.
A Lib Dem source said they were “buoyed” by their results overnight, claiming it set them up to take seats off the Tories at the next election.
“This is just a taster of what is to come throughout Friday in the Blue Wall,” they added.
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‘We’re surging, they’re sinking’
Reform UK is performing well, racking up an average vote share of between 14% and 15%, and pushing the Conservatives into third place in some areas, including Sunderland.
However, it isn’t fielding candidates everywhere – instead targeting Leave seats where its predecessors, the Brexit Party and UKIP, performed well – and has yet to win a seat or council for itself.
Stablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector.
After failing to gain support from key Democrats on May 8, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the US Senate in a 66–32 procedural vote on May 20 and is now heading to a debate on the Senate floor.
The bill seeks to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.
Related: German gov’t missed out on $2.3B profit after selling Bitcoin at $57K
“This act doesn’t just regulate stablecoins, it legitimizes them,” said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.
“It sets clear rules, and with clarity comes confidence. That’s what institutions have been waiting for,” Grachev told Cointelegraph during the Chain Reaction daily X spaces show on May 20, adding:
“Stablecoins aren’t a crypto experiment anymore. They’re a better form of money. Faster, simpler, and more transparent than fiat. It’s only a matter of time before they become the default.”
Senate bill seen as path to unified digital system
The GENIUS Act may be the “first step” toward establishing a “unified digital financial system which is borderless, programmable and efficient,” Grachev said, adding:
“When the US moves on stablecoin policy, the world watches.”
Republican Senator Cynthia Lummis, a co-sponsor of the bill, also pointed to Memorial Day as a “fair target” for its potential passage.
Grachev said regulatory clarity alone will not drive institutional adoption. Products offering stable and predictable yield will also be necessary. Falcon Finance is currently developing a synthetic yield-bearing dollar product designed for this market, he noted.
Yield-bearing stablecoins now represent 4.5% of the total stablecoin market after rising to $11 billion in total circulation, Cointelegraph reported on May 21.
Related: Stablecoins seen as ideal fit for real-time collateral management
GENIUS Act regulatory gaps don’t address offshore stablecoin issuers
Despite broad support for the GENIUS Act, some critics say the legislation does not go far enough. Vugar Usi Zade, the chief operating officer at Bitget exchange, told Cointelegraph that “the bill doesn’t fully address offshore stablecoin issuers like Tether, which continue to play an outsized role in global liquidity.”
He added that US-based issuers will now face “steeper costs,” likely accelerating consolidation across the market and favoring well-resourced players that can meet the new thresholds.
Still, Zade acknowledged that the legislation could bring greater “stability” to regulated offerings, depending on how it is ultimately worded and enforced.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Hong Kong’s Legislative Council passed the Stablecoin Bill, paving the way for a regulated framework that could position the region as a global leader in digital assets and Web3 development.
In a May 21 post on X, Legislative Council member Johnny Ng Kit-Chong said the bill had passed its third reading, clearing the final hurdle for adoption.
“It is expected that by the end of this year, major institutions will be able to apply to the Hong Kong Monetary Authority to become licensed stablecoin issuers,” Ng said.
According to the new Hong Kong legislation, stablecoins must be backed by fiat currency as underlying assets. Ng said Hong Kong is welcoming “global enterprises and institutions interested in issuing stablecoins to apply in Hong Kong,” offering to personally assist with introductions and collaboration:
“I am also happy to facilitate connections and collaborate with all stakeholders to advance the development of Web3 in Asia and globally, with Hong Kong at the center.“
Related: Hong Kong introduces crypto staking rules, reaffirms Web3 commitment
Hong Kong aims to become a Web3 powerhouse
Ng said the legislation marks the first step on the road toward building Web3 infrastructure in Hong Kong. “The most crucial step is to develop more real-world applications.”
Ng said stablecoin adoption has the potential to drive innovation in retail payments, cross-border trade and peer-to-peer transactions.
He added that he encourages the development and adoption of stablecoins, since “they represent a major financial innovation.” Regarding enhancing market stability, Ng suggested distributing interest earnings to stablecoin holders.
Related: HashKey receives Hong Kong approval to offer crypto staking services
Interest for stablecoin holders
According to Ng, “providing interest will strengthen the competitiveness of stablecoins.” This increased competitiveness, he explained, incentivizes broader participation and expands stablecoin market share, which supports what he views as sustainable growth.
Ng’s remarks that yield-bearing stablecoins are more competitive follow recent positive data. Research indicates that yield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market, a steep climb from just $1.5 billion and a 1% market share at the start of 2024.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Bitcoin Suisse secured an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), marking a major step in the Swiss crypto firm’s expansion beyond the European Union.
The Swiss crypto financial service provider received the in-principle approval through its subsidiary BTCS (Middle East), according to a May 21 news release.
The IPA is a precursor to a full financial services license, which would allow Bitcoin Suisse to provide regulated crypto financial services such as digital asset trading, crypto securities and derivatives offerings, as well as custody solutions.
The approval reflects the firm’s “strong commitment to maintaining the highest standards of transparency, security, and regulatory compliance,” according to Ceyda Majcen, head of global expansion and designated senior executive officer of BTCS (Middle East).
“Abu Dhabi, one of the Middle East’s fastest-growing financial centers, presents a compelling opportunity for growth. We look forward to working closely with the FSRA to obtain our full license,” Majcen wrote in a May 21 X announcement.
Related: German gov’t missed out on $2.3B profit after selling Bitcoin at $57K
This marks Bitcoin Suisse’s first expansion outside of the European Union.
Founded in 2013, Bitcoin Suisse played a significant role in developing the country’s crypto ecosystem and has been a key contributor to Switzerland’s Crypto Valley, a Switzerland-based blockchain ecosystem valued at more than $500 billion.
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Crypto firms bet on Middle East as next global crypto hub
Increasingly more crypto firms are expanding into the Middle East, seeing the region as the next potential global crypto hub due to its business-friendly regulatory licensing environment.
On April 29, Circle, the issuer of the world’s second-largest stablecoin, USDC (USDC), received an in-principle approval from the FSRA, moving one step closer to the full license to become a regulated money service provider in the United Arab Emirates.
A day earlier, the Stacks Asia DLT Foundation partnered with ADGM, becoming the first Bitcoin-based organization to establish an official presence in the Middle East, Cointelegraph reported on April 28.
As part of the partnership, the Stacks Foundation aims to advance progressive regulatory frameworks in the Middle East.
“We’re not just focused locally — our team is engaged in global conversations, advocating for frameworks that balance decentralization, security, innovation, and compliance surrounding the unlocking of Bitcoin capital,” Kyle Ellicott, executive director at Stacks Asia DLT Foundation, told Cointelegraph.
The foundation is also developing the Bitcoin Capital Activation Framework, described as a comprehensive policy blueprint to help regulators enable Bitcoin utility in their jurisdictions.
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