Labour MPs push to make UK crypto donation ban permanent

Labour MPs have tabled amendments to extend a March moratorium on cryptocurrency donations indefinitely. The move follows widening fallout over Reform UK's funding sources.

The lawmakers acted amid reports that hundreds of millions of dollars in crypto contributions have flowed to UK candidates and parties. They aim to convert the existing temporary ban into a lasting prohibition.

The push centers on concerns raised by the Nigel Farage-linked scandal involving Reform UK. Amendments were introduced to embed the moratorium permanently in law.

No timeline for a final vote was specified in the latest developments.

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The UK government has introduced strict new rules capping political donations from British citizens abroad at £100,000 annually and imposing an immediate moratorium on cryptocurrency contributions. The measures, prompted by scrutiny of large gifts from a Tether-linked billionaire to Reform UK, aim to curb foreign financial influence. Communities Secretary Steve Reed described the threat as more acute due to tracing challenges with overseas funds and crypto.

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A Labour MP has asked the Parliamentary Commissioner for Standards to investigate Nigel Farage's reported contact with the Bank of England regarding its digital pound plans. The complaint links the matter to political donations from a major Tether investor to Reform UK. No findings of wrongdoing have been made.

Leading U.S. crypto advocacy groups have asked the House Ways and Means Committee to advance the Tax Clarity for Mining and Staking Act without changes. The bill, introduced by Republican Representative Mike Carey, would allow miners and staking reward recipients to defer tax obligations on new digital assets. An industry letter sent Sunday highlighted the need for clearer tax treatment.

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The U.S. House Ways and Means Committee held a hearing Tuesday on several crypto tax proposals. Lawmakers raised concerns about exemptions for mining and staking rewards. Committee leaders indicated the bills may require further work before advancing.

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