The grim news for the Tories in the latest Sky News/YouGov poll begs another question about Rishi Sunak’s political judgement. Was a long election campaign a blunder?
The prime minister is already under fire from Conservative MPs and activists for gambling on an election in July rather than waiting for October or November.
The conventional wisdom was that economic news would be better by the autumn and deportation flights to Rwanda would help stop the boats bringing migrants across the Channel.
But as well as doubts about a July poll, the big slump in Tory supportsince the last Sky News/YouGov poll on June 3, suggests a long campaign of six weeks may also have backfired.
On 22 May, the day the prime minister made his shock general election announcement, some veteran Tory MPs privately questioned Mr Sunak’s decision to fight a long campaign.
“Margaret used to have three or four-week campaigns,” one long-serving Conservative MP who has stepped down told Sky News, in a reference to three-times election winner Mrs Thatcher.
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But with the Tories trailing badly behind Labour in the polls for months, Mr Sunak clearly hoped a long election campaign would give his party more time to recover and close the gap.
However, the opposite appears to have happened. As the campaign continues, with polling day still two weeks away, opinion polls are suggesting bigger Conservative losses, not smaller.
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Poll: Labour on course for best-ever election result
On 3 June our YouGov poll suggested the Conservatives would hold 140 seats. Now the same pollsters are suggesting they’d hold just 108, well below their previous lowest of 141 in 1906.
The big change of course, has been Nigel Farage’s dramatic comeback as Reform UK leader on 3 June. In the Sky News/YouGov poll that day, Reform UK was not forecast to win any seats.
Now it’s five, including Mr Farage in Clacton. The other big movers are the Liberal Democrats, forecast to win 48 seats on 3 June, now 67. The latest poll is good news for smaller parties generally.
Labour’s seat projection is up slightly from 422 seats to 425 and its majority is up from 194 to 200. But it’s the Tory slump that’s the big change since the early days of the campaign.
So are those veteran MPs who lamented the glory days of Mrs Thatcher correct about previous Tory prime ministers opting for shorter campaigns? It would appear so.
Had Mr Sunak waited to call the election until January 2025 – the end of a maximum five-year term – parliament would have automatically been dissolved 25 working days before polling day, meaning he could have opted for a shorter campaign.
In 1983, when Mrs Thatcher won a landslide majority of 144 seats, she had announced the election on 9 May, parliament was dissolved on 13 May and polling day was four weeks later on 9 June.
Image: Sunak gambled on a July election Pic: PA
It was a similar story in 1987. Mrs Thatcher announced the election on 11 May and polling day was a month later on 11 June, when she won a second landslide and a majority of 102.
In 1992, when Sir John Major pulled off a shock victory after months of trailing Neil Kinnock’s Labour badly in the opinion polls, the election campaign again lasted just 30 days.
Sir John asked the Queen to dissolve parliament on 11 March and voters went to polls on 9 April, when the Conservatives won a 21-seat majority over Labour.
Lord Cameron’s 2015 campaign, after five years of a Conservative-Liberal Democrat coalition was longer. Parliament was dissolved on 30 March and the election was on 7 May, when he won a Tory majority of 10.
Image: Margaret Thatcher used to have three to four week campaigns. Pic: PA
In the most recent general election, Boris Johnson’s dash to the polls in 2019, parliament was dissolved on 6 November and the election was on 12 December, with Mr Johnson winning an 80-seat majority.
This time, Mr Sunak has chosen a gruelling six-week campaign. More time for mistakes? And more time for the Tories’ opponents – Labour, the Lib Dems and Reform UK – to gain momentum?
It’s starting to look like that. At times since his D-day fiasco, the prime minister has looked crestfallen. Now senior Tories are talking about a Labour “super-majority” and a “blank cheque” for Sir Keir Starmer.
And there are still two weeks to go in this long, six-week campaign. But that was Mr Sunak’s choice.
The US Securities and Exchange Commission (SEC) sent warning letters to several exchange-traded fund (ETF) providers, halting applications for leveraged ETFs that offer more than 200% exposure to the underlying asset.
ETF issuers Direxion, ProShares, and Tidal received letters from the SEC citing legal provisions under the Investment Company Act of 1940.
The law caps exposure of investment funds at 200% of their value-at-risk, defined by a “reference portfolio” of unleveraged, underlying assets or benchmark indexes. The SEC said:
“The fund’s designated reference portfolio provides the unleveraged baseline against which to compare the fund’s leveraged portfolio for purposes of identifying the fund’s leverage risk under the rule.”
The SEC directed issuers to reduce the amount of leverage in accordance with the existing regulations before the applications would be considered, putting a damper on 3-5x crypto leveraged ETFs in the US.
SEC regulators posted the warning letters the same day they were sent to the issuer, in an “unusually speedy move” that signals officials are keen on communicating their concerns about leveraged products to the investing public, according to Bloomberg.
The crypto market took a nosedive in October after a flash crash caused $20 billion in leveraged liquidations, the most severe single-day liquidation event in crypto history, sparking discussions among analysts and investors over the dangers of leverage and its effect on the crypto market.
24-hour liquidations in the crypto derivatives market. Source: Coinglass
Liquidations in the crypto futures market during the last cycle averaged about $28 million in long positions and $15 million in shorts per day.
The current cycle is clocking about $68 million in long liquidations and $45 million in short liquidations daily, according to Glassnode.
Demand for leveraged crypto ETFs surged following the 2024 presidential election in the United States, in anticipation of a better regulatory climate for crypto in the US.
Leveraged ETFs are not subject to margin calls and automated liquidations like leveraged crypto derivatives, but can still deal a serious blow to investor capital in a bear market or even a sideways market, as losses compound more quickly than gains.
Taiwan could see its first stablecoin launched as early as the second half of 2026 as lawmakers advance new rules for digital assets, according to one of the country’s financial regulators.
According to a Focus Taiwan report on Wednesday, Financial Supervisory Commission (FSC) Chair Peng Jin-lon said that, based on the timeline for passing related legislation, a Taiwan-issued stablecoin could enter the market in the second half of 2026.
Should the Virtual Assets Service Act pass in the country’s next legislative session, and accounting for a six-month buffer period for the law to take effect, it would lay the groundwork for the launch of a Taiwanese stablecoin.
Peng said the draft legislation was derived from Europe’s Markets in Crypto-Assets (MiCA) and would eventually allow non-financial institutions to issue stablecoins. Initially, however, Taiwan’s central bank and the FSC would restrict issuance to regulated entities.
Last year, Taiwan’s policymakers began enforcing Anti-Money Laundering regulations in response to alleged violations by crypto companies MaiCoin and BitoPro. As of December, however, regulated entities in the country have yet to launch a stablecoin pegged to either the US dollar or the Taiwan dollar.
In addition to the FSC’s advancement of stablecoin regulations, Taiwan’s policymakers are reportedly assessing the total amount of Bitcoin (BTC) confiscated by authorities. The move signaled that the nation could be preparing to launch its own strategic crypto stockpile.
Ju-Chun, a Taiwanese lawmaker, called on the government to add BTC to its national reserves in May as a hedge against economic uncertainty.
The country’s reserves include US Treasury bonds and gold, but no cryptocurrencies. Other countries, such as the US, have adopted policies that promote Bitcoin and crypto reserves.
Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.
He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”
Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.
“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.
Gensler’s record and industry backlash
Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.
The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.
Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg
Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.
The politicization of crypto
Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.
“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”
He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.
On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”
He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.
Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.
Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.