Industry leaders are urging the Labor government to seize this momentum and deliver on promises of clearer regulations for digital assets, warning that further delays could risk Australia falling behind global markets.
With both major parties pledging greater clarity on crypto regulation, Labor’s re-election presents an opportunity to act swiftly, with industry stakeholders agreeing that the result paves the way for the implementation of long-awaited reforms.
“Labor’s re-election provides policy continuity and the stable governance necessary for implementing long-term economic reform. For the digital asset sector, it brings with it a legislative mandate and a timeline,” BTC Markets chief executive Caroline Bowler said.
This follows Labor’s pre-election commitment to release draft legislation and deliver a fit-for-purpose regulatory framework for Digital Asset Platforms (DAPs) and stablecoin payment systems by 2026, crucially, integrating the new rules into the existing AFSL regime.
If Labor fulfils these promises, it would align Australia with international best practice, helping to attract foreign capital, retain local talent, and prevent further offshoring of digital asset businesses, Bowler said.
“As the government prepares to legislate, the focus must remain on collaboration between regulators, industry, and consumer groups. If executed well, the benefits are broad: increased economic activity, new jobs, investment-grade infrastructure, and enhanced financial inclusion,” she noted.
However, cryptocurrency exchange Coinbase warned that digital asset regulation is already “long-overdue” and urged Labor to act with greater urgency to ensure Australia doesn’t fall behind global markets.
“With a clear mandate to govern for a second term, the Labor government has both the opportunity and the responsibility to move quickly on this issue,” John O’Loghlen, APAC managing director at Coinbase, said on Monday.
“Australia has been stuck in consultation mode for too long. Meanwhile, global counterparts like the EU, UK, Singapore and the US are already delivering clear, proactive crypto regulation that fosters innovation and protects consumers.”
He urged the government to establish a Crypto Asset Taskforce within its first 100 days, with the aim of bringing forward legislation that promotes innovation and consumer protections, and halts the “exodus of talent and capital to other markets”.
“With global regulatory momentum accelerating, the new Albanese Labor government must show it is serious about making the country a home for Web3 development and digital finance and unleashing the productivity growth this technology can provide,” said O’Loghlen.
With the opposition having pledged to introduce draft crypto legislation within its first 100 days, Crypto.com’s Australia head, Vakul Talwar, is urging Labor to adopt a similar timeline.
“We also look forward to working with the incoming minister responsible for cryptocurrency, to ensure that this legislation meets the needs of both consumers and the industry,” Talwar said. “It is important that our politicians now turn their attention to drafting fit-for-purpose crypto legislation.”
The good news, Talwar noted, is that recent months have marked a clear shift in momentum towards crypto regulation across the political spectrum.
“It is fundamental that we make strong inroads into developing fit-for-purpose legislation by year end, as a failure to do so risks Australia losing out on foreign investment and innovation moving to other jurisdictions that offer more clarity,” he added.
For its part, MHC Digital Group said Labor now simply needs to stay the course, with much of the groundwork for digital asset regulation already in place.
“We’re optimistic that the Labor government can follow through with their commitment to implementing their proposed crypto regulatory framework, which we are broadly supportive of,” Edward Carroll, head of global markets and corporate finance at MHC said.
Carroll pointed out that there’s also hope this government will address the ongoing debanking issue which, according to him, continues to undermine growth and trust in the sector.
“While the 2026 timeline gives the industry some runway, preparation needs to start now,” Carroll said.
“If done right, these reforms could bring Australia back in line with the rest of the world so that we can retain talent and build a really exciting and innovative ecosystem.”
