As the Bill to lower the voting age to 16 moves through Parliament, the Labour Party is rightly thinking about how to engage the younger generation who are all too often absent from political debate. For 16-25-year-olds facing uncertain job prospects, a housing crisis, and the long shadow of student debt, the traditional financial ladder can feel increasingly out of reach.
New polling for the Coinbase Institute, based on a national survey, points to something Westminster has been slow to grasp. For this generation, crypto is not a fringe interest. It is often their first encounter with finance, and how saving, investing and markets work in practice.
The research found that more than 80% of 16-25-year-olds say they are familiar with cryptocurrency. That compares to 43% who recognise a Stocks & Shares ISA, and just 20% a Help to Buy ISA. Bitcoin alone is recognised by 65% of young people - making it the most widely recognised financial product among this group.
That should give political parties pause. The same pattern holds among young Labour voters. More than 70% report an awareness of Bitcoin. This is not about hype or speculation; 64% say they are aware that there are risks associated with crypto, but they are engaging with it regardless. They are learning, testing, and trying to build some form of financial footing in an economy where traditional routes to financial participation feel increasingly out of reach.
And they are paying attention to how politicians respond. For many, crypto policy is becoming a simple test of whether a party looks modern, open to innovation and economically serious.
The same polling shows that parties seen as constructive and open to crypto are viewed more favourably, particularly among Labour’s own voters. Among 21–25-year-olds, nearly three in ten Labour voters say they would view a pro-crypto party more positively. More broadly, 43% of young people say they would trust a party more if it showed it understood technologies like crypto and blockchain.
Crypto is not yet a decisive voting issue. But it increasingly signals something broader: whether a party understands how the economy is changing, and whether it is prepared to engage with that change seriously.
That should inspire Labour to make progress among younger, economically aspirational voters - by presenting the party as more open to new forms of investment and growth.
A gap in Labour’s inclusion agenda
Labour’s Financial Inclusion Strategy, published last year, rightly focuses on digital access and the shift towards managing money online. But it says little about crypto or digital assets.
That omission is becoming harder to justify. Ownership has risen sharply in recent years, particularly among under-30s, with FCA research finding that nearly one in five 18-34 year olds have invested in crypto in 2024.
More importantly, crypto is now functioning as an entry point - a way into thinking about money and markets for people who might otherwise feel locked out.
Financial inclusion cannot just mean access to a bank account or ISA. It has to mean access to the tools and confidence to participate in the economy as it exists today. That shift is already happening in practice. The question for policymakers is whether they move to shape it, or continue to lag behind.
At the moment, many young people are getting that exposure through crypto - but without much support. Nearly two-thirds say they would back Government-led education on the subject - a clear signal that they are looking for for the tools to engage safely and responsibly to engage with this new asset class. They want to understand the risks, avoid scams, and move into more stable, long-term forms of investing over time.
That is an agenda Labour should be comfortable owning.
A practical way forward
None of this requires Labour to weaken its commitment on consumer protection .
- If this is where young people are encountering finance, it should be reflected in how we teach financial literacy - with a clear focus on risk, resilience and long-term decision-making.
- That means clear rules, proper oversight, and an understanding that this is now part of the mainstream financial landscape. Done properly, this is not deregulatory - it is about bringing activity into a regulated, more transparent framework.
- As financial products evolve, digital assets and more traditional investments are increasingly appearing side by side. There is an opportunity to help young people diversify portfolios and move from initial exposure into different forms of saving and investment.
Handled properly, this is not a risk for Labour - it is an opportunity. An opportunity to modernise its financial inclusion agenda, to lead on responsible innovation, and to build a more credible offer to younger voters trying to find their footing in a changing economy.
Because this is not ultimately about crypto. It is about whether Labour can convince a generation that it recognises how their financial lives are changing, and is willing to help them build security within it.
If it cannot, it risks reinforcing a perception that it speaks confidently about the economy of the past, but less clearly about the one young people are actually living in.
The parties that can recognise and act on this will acquire the votes of the future.
Contribution by Katie Harries, Director & Head of Policy for Europe, Coinbase