Andy Burnham won the Makerfield by-election on June 18 with 54.8% of the vote, defeating Reform UK by more than 9,200 votes on a turnout of nearly 59%. The result puts Labour's most crypto-friendly figure in Parliament — and raises the odds that UK digital asset policy could take a sharp turn within months.
The Web3 champion
Burnham has openly backed Web3, saying Manchester was the home of the Industrial Revolution and should be the home of the web3 revolution. That puts him at odds with Keir Starmer's government, which imposed a moratorium on crypto donations to political parties in March 2026 after the Rycroft Review flagged risks around anonymity and foreign money. Reform UK, the country's most crypto-forward party, accepts crypto donations and its leader Nigel Farage has proposed a national Bitcoin reserve. Burnham's win shifts the internal Labour dynamic.
What the markets are betting
On Polymarket, traders have wagered over $11 million on the Labour leadership succession. Burnham is the clear favorite to take over. Starmer insists he'll fight any challenge, but cabinet ministers, union leaders and party donors have already started talking about timing. Days after the by-election, the 10-year UK gilt yield rose to about 4.8% and sterling weakened — a sign that investors are pricing in the possibility of higher borrowing and spending under a Burnham premiership.
Bitcoin was near $63,900, up less than 1% on the day but down about 17% over the month and 38% on the year. The FCA says crypto ownership among UK adults has slipped to about 8%, from 12% a year earlier. That backdrop matters: a Burnham leadership could try to reverse that slide with friendlier rules.
The path ahead
Burnham is due to be sworn in as an MP within days of the by-election, removing the last formal barrier to a leadership bid. The question now is whether Starmer can hold off the challenge long enough to see through his own agenda, or whether the party — and the country — is about to get a government that treats crypto more like an opportunity than a threat.
