Regulation
French election results in parliament without an absolute majority, raising questions about cryptocurrency regulation
Full summary
- The French legislative elections resulted in a parliament without an absolute majority, with no party or coalition winning an absolute majority.
- The left-wing New Popular Front coalition won the most seats with 188, followed by President Macron’s Ensemble with 161 seats and Marine Le Pen’s National Rally with 141 seats.
- The lack of a majority could make it more difficult to pass new laws, including cryptocurrency regulations.
- Prime Minister Gabriel Attal is expected to resign and Macron must choose a new prime minister.
- This result could have an impact on France’s domestic and international policy, particularly on its position on cryptocurrencies and digital assets.
The recent general elections in France resulted in a parliament without an absolute majority, a rare phenomenon in modern French politics that could have profound consequences for the country’s governance. including its approach to cryptocurrency regulation.
The elections, which took place on Sunday, saw the New Popular Front, a coalition of left-wing parties, emerge as the largest bloc with 188 seats in the 577-seat National Assembly.
This result, however, is far from the 289 seats needed to secure an absolute majority. President Emmanuel Macron’s centrist alliance Ensemble won 161 seats, while Marine Le Pen’s far-right National Rally made substantial gains, taking 141 seats.
The unexpected outcome has created an unfamiliar political landscape in France, where a clear majority usually emerges in parliament. The absence of a dominant party or coalition risks complicating the process of forming a new government and passing laws.
Prime Minister Gabriel Attal, from Macron’s Renaissance party, has announced his intention to resign, leaving the president with the difficult task of appointing a new prime minister capable of navigating a fragmented political landscape.
The implications of this hung parliament go beyond domestic politics. Mark Foster, head of European policy at the Crypto Council for Innovation, suggests that the new parliamentary composition could make domestic policymaking, including regulation of cryptocurrencies and digital assets, more uncertain and difficult.
France has made significant progress in the cryptocurrency space, registering 74 crypto companies last year, with hopes of reaching 100. The country is also actively working to attract more digital asset businesses. However, the current political situation could slow down or complicate these efforts.
The election results come at a crucial time for cryptocurrency regulation in France and the wider European Union. EU Market for Crypto Assets (MiCA) rules on stablecoins Implementation of these new rules began in late June, and the rest of the crypto rules are expected to be implemented by the end of the year. Political uncertainty in France could potentially impact the implementation and enforcement of these regulations.
The fact that the parliament is without an absolute majority also raises questions about France’s influence on the international stage, particularly within the European Union and in global economic forums. As the EU’s second-largest economy and a key player in international diplomacy, any political instability could have repercussions beyond its borders.
For the crypto industry, this political shift In France adds an additional layer of complexity to an already evolving regulatory landscape. While France has been relatively welcoming to cryptocurrency businesses, the new political reality could lead to a period of political uncertainty.
The election result also reflects broader trends in European politics, with traditional centrist parties losing ground to left-wing and far-right movements. This shift could influence how centrist parties behave in European politics. European nations address emerging technologies and financial innovations such as cryptocurrencies.