General election: Sunak fires starting gun – as Starmer says it’s ‘time for change’
The race for Number 10 begins in earnest today following Rishi Sunak’s decision to call a snap summer general election in a high stakes move that could bring to an end his party’s 14 years in government.
The prime minister took the gamble of his political life when he announced that he will go to the country on 4 July – much sooner than had been expected and while the Tories are languishing behind Labour in the opinion polls.
Outlining his decision in the pouring rain outside of Downing Street, a sodden Mr Sunak said that “now is the moment for Britain to choose its future” as he claimed his party could be trusted to lead the country in a time of global instability.
In response, Labour leader Sir Keir Starmer told voters: “Together we can stop the chaos, we can turn the page, we can start to rebuild Britain.”
A July election is earlier than many in Westminster had expected, with a contest in October or November widely thought to have been more likely.
The move has surprised and even upset some within the Conservative ranks, with senior figures telling Sky News’ political editor Beth Rigby the decision is “madness” given Labour’s 20 point lead in the polls.
Rishi Sunak delivers a speech calling for a general election.
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Sky News election announcement
Some Tory MPs publicly expressed their concerns, with backbencher Tracey Crouch posting on X: “I am feeling quite emotional about all this.
“I was anticipating an autumn departure from Parliament and still had important issues to raise on behalf of my constituents between now and then. I am sad that I won’t now get to do that.”
The election timing allows just two days for “wash-up”, when the government finalises non-contentious pieces of legislation before parliament is dissolved.
It means that some of the Conservative’s flagship plans, such as a ban on smoking, leasehold reforms and improvements to renters’ rights might be left to the next government.
Mr Sunak is said to have made the calculation that little would change between now and November.
Housing Secretary Michael Gove is said to have been among those who backed the gamble during emergency cabinet discussions, telling the prime minister: “Who dares wins. And you dared, and you’re going to win.”
The announcement came after the Office for National Statistics said inflation slowed to 2.3% in April, down from 3.2% in March.
In a sign of what the election will be fought on, the prime minister made the economy a key element of his pitch to the nation, saying the inflation figures are “proof that the plan and priorities I set out are working”.
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He also highlighted Vladimir Putin’s invasion of Ukraine, the tensions in the Middle East relating to the Israel-Hamas conflict, the threat of China and migration “being weaponised by hostile states to threaten the integrity of our borders”.
“These uncertain times call for a clear plan and bold action to chart a course to a secure future,” he said.
Later, at a campaign rally that saw Sky News’ Darren McCaffery escorted out, Mr Sunak acknowledged he was the underdog but suggested Labour was acting like it had already won.
Prime Minister Rishi Sunak speaking at a General Election campaign event at ExCeL London. Pic: PA
“Labour want you to think that this election is over before it has even begun.
“But we are going to fight every day for our values and our vision and the British people are going to show Labour that they don’t take too kindly to being taken for granted.”
But Labour leader Sir Keir said: “If they get another five years they will feel entitled to carry on exactly as they are. Nothing will change.”
He promised a “new spirit of service”, putting the country before party interests.
“I am well aware of the cynicism people hold towards politicians at the moment, but I came into politics late, having served our country as leader of the Crown Prosecution Service, and I helped the Police Service in Northern Ireland to gain the consent of all communities.”
Pic: PA
Labour needs a swing of 12.5 percentage points just to win a majority of one – something even Sir Tony Blair did not achieve in his landslide victory of 1997.
But having transformed the party after its historic defeat in 2019, some pollsters believe Sir Keir could wipe out the Tories and be swept into power with as many as 400 seats.
If that happens it would be a remarkable turn of events compared to the last election, which saw the Conservatives under Boris Johnson win a thumping 80-seat majority.
That has since been slashed by a series of by-election losses, while repeated leadership elections and sleaze scandals have seen the Tories’ popularity plummet among voters.
A US federal judge has agreed to pause a lawsuit filed by 18 state attorneys general and the crypto lobby group DeFi Education Fund against the Securities and Exchange Commission after all parties said new SEC leadership could make the action moot.
Kentucky District Court Judge Gregory Van Tatenhove ordered a 60-day stay on the case on April 16, noting a mid-March filing from the SEC that “this case could potentially be resolved” due to a leadership transition at the regulator.
He added that the parties must file a joint status report within 30 days.
Paul Atkins, a Wall Street adviser who has held board positions with crypto advocacy groups, was sworn in as the new SEC chair earlier this month, replacing acting chair Mark Uyeda and taking over from Gary Gensler.
The 18 attorneys general, all hailing from Republican states, filed the lawsuit with the DeFi Education Fund against the securities regulator in November, alleging that the SEC exceeded its authority when targeting crypto exchanges with lawsuits, accusing the regulator and then-chair Gensler of “gross government overreach.”
The plaintiffs included attorneys general from Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Indiana, Oklahoma and Florida, among others.
“Without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions,” the lawsuit stated.
DeFi groups drop case against IRS over killed broker rule
Meanwhile, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council dropped their lawsuit against the Internal Revenue Service on April 16.
“The parties hereby stipulate to voluntary dismissal of this action without prejudice because the case has become moot,” stated the filing.
The lawsuit, filed in December, argued that the so-called IRS DeFi broker rule went beyond the agency’s authority and was unconstitutional.
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On April 11, President Donald Trump signed a bill to revoke the rule that would have required DeFi protocols to report transactions to the IRS.
It comes as the SEC has paused or dropped several high-profile lawsuits against crypto companies this year under its new leadership.
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Panama’s capital city will accept cryptocurrency payments for taxes and municipal fees, including bus tickets and permits, Panama City mayor Mayer Mizrachi announced on April 15, joining a growing list of jurisdictions globally that have voted to accept such payments.
Panama City will begin accepting Bitcoin (BTC), Ether (ETH), Circle’s USDC (USDC), and Tether’s USDt (USDT) stablecoin for payment once the crypto-to-fiat payment rails are established, Mizrachi posted on the X platform.
Mizrachi said previous administrations attempted to push through similar legislation but failed to overcome stipulations requiring the local government to accept funds denominated in US dollars.
In a translated statement, the Panama City mayor said that the local government partnered with a bank that will immediately convert any digital assets received into US dollars, allowing the municipality to accept crypto without introducing new legislation.
Panama City joins a growing list of global jurisdictions on the municipal and state level accepting cryptocurrency payments for taxes, exploring Bitcoin strategic reserves to protect public treasuries from inflation and passing pro-crypto policies to attract investment.
Related: New York bill proposes legalizing Bitcoin, crypto for state payments
Municipalities and states embrace digital assets
Several municipalities and territories around the globe already accept crypto for tax payments or are exploring various implementations of blockchain technology for government spending.
The US state of Colorado started accepting crypto payments for taxes in September 2022. Much like Panama City said it will do, Colorado immediately converts the crypto to fiat.
In December 2023, the city of Lugano, Switzerland, announced taxes and city fees could be paid in Bitcoin, which was one of the developments that earned it the reputation of being a globally recognized Bitcoin city.
The city council of Vancouver, Canada, passed a motion to become “Bitcoin-friendly city” in December 2024. As part of that motion, the Vancouver local government will explore integrating BTC into the financial system, including tax payments.
North Carolina lawmaker Neal Jackson introduced legislation titled “The North Carolina Digital Asset Freedom Act” on April 10. If passed, the bill will recognize cryptocurrencies as an official form of payment that can be used to pay taxes.
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As digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea,” said US Federal Reserve Chair Jerome Powell.
In an April 16 panel at the Economic Club of Chicago, Powell commented on the evolution of the cryptocurrency industry, which has delivered a consumer use case that “could have wide appeal” following a difficult “wave of failures and frauds,” he said.
Powell delivers remarks at the Economic Club of Chicago. Source: Bloomberg Television
During crypto’s difficult years, which culminated in 2022 and 2023 with several high-profile business failures, the Fed “worked with Congress to try to get a […] legal framework for stablecoins, which would have been a nice place to start,” said Powell. “We were not successful.”
“I think that the climate is changing and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins,” he said.
“Depending on what’s in it, that’s a good idea. We need that. There isn’t one now,” said Powell.
This isn’t the first time Powell acknowledged the need for stablecoin legislation. In June 2023, the Fed boss told the House Financial Services Committee that stablecoins were “a form of money” that requires “robust” federal oversight.
Related: Stablecoins are the best way to ensure US dollar dominance — Web3 CEO
Support for stablecoin legislation is growing
The election of US President Donald Trump has ushered in a new era of pro-crypto appointments and policy shifts that could make America a digital asset superpower.
Washington’s formal embrace of cryptocurrency began earlier this year when Trump established the President’s Council of Advisers on Digital Assets, with Bo Hines as the executive director.
Hines told a digital asset summit in New York last month that a comprehensive stablecoin bill was a top priority for the current administration. After the Senate Banking Committee passed the GENIUS Act, a final stablecoin bill could arrive at the president’s desk “in the next two months,” said Hines.
Bo Hines (right) speaks of “imminent” stablecoin legislation at the Digital Asset Summit on March 18. Source: Cointelegraph
Stablecoins pegged to the US dollar are by far the most popular tokens used for remittances and cryptocurrency trading.
The combined value of all stablecoins is currently $227 billion, according to RWA.xyz. The dollar-pegged USDC (USDC) and USDt (USDT) account for more than 88% of the total market.
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