France's elections create a complex legislative landscape

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Despite the uncertainty, France has made progress in regulating cryptocurrencies, with 74 crypto companies registered last year.

France's recent general election left parliament balanced, making it difficult to pass new laws. The new Popular Front, made up of left-wing parties, won 188 seats, but fell short of the 289 needed for a majority. The situation has created an uncertain political landscape, with President Emmanuel Macron's Together coalition winning 161 seats and Marine Le Pen's far-right National Rally winning 141.

Problems associated with developing new policies

The results of a balanced parliament will be profound and far-reaching. Without a clear majority, the process of passing new laws will be more contentious. Mark Foster, Head of Policy EU at the Crypto Council for Innovation, spoke about the potential challenges in developing new policies, especially those related to cryptocurrency regulation. The composition of the new parliament, with significant numbers of far-left and far-right groups, creates a difficult environment for policy development.

Progress in Cryptocurrency Regulation

Despite political uncertainty, France has made significant progress in cryptocurrency regulation. Last year, 74 crypto companies were registered in the country, and this number is expected to reach 100. Regulators are actively recruiting crypto companies and implementing the European Union’s comprehensive legislation, the Markets in Crypto-Assets (MiCA) rules. The application of these rules to stablecoins began in late June, with the remaining rules set to be implemented by the end of the year.

The French general election has resulted in a balanced parliament, making the legislative process more complex and uncertain. The failure of the New Popular Front to gain a majority in parliament, coupled with the significant presence of far-left and far-right parties, poses challenges for policymaking, particularly in the area of ​​cryptocurrency regulation.

President Macron's choice of a new prime minister and strategic cooperation between the different political parties will be crucial to overcome this uncertain political situation and ensure further progress in regulatory development.

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