Climate minister Alok Sharma’s air travel to 30 countries in seven months is “bizarre” and sets a bad example ahead of COP26, a Labour minister has said.
Speaking to Kay Burley on Sky News, David Lammy told that reports that COP26 President Mr Sharma flew tens of thousands of miles during the pandemic are “worrying” and demonstrate that “it is one rule for them and another rule for us”.
The government’s climate minister is under fire for flying to dozens of countries since the start of the pandemic.
Mr Sharma made 30 international trips in the latest seven months, including to six countries which are on the government’s COVID-19 red list, the Daily Mail newspaper has reported.
It is believed many of the trips took place while international travel was all but banned in the UK and that Mr Sharma did not have to isolate after any of them as he was a “crown servant” on state business, an exemption that does, however, require a negative COVID test.
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Speaking on Sky News, shadow justice secretary Mr Lammy questioned whether the amount of foreign travel Mr Sharma has undertaken was necessary.
“Well the optics are very clear – it is one rule for them and another rule for us. Whether it is Dominic Cummings, whether it is Matt Hancock, whether it is Alok Sharma,” he said.
“And I’ve got to say, of course some international travel is required – but this amount of international travel when you are climate change minister feels to be bizarre and feels to not be setting the example.
“Particularly when there is quite widespread criticism of Britain’s response to COP – just 100 days to go.
“So I think this is worrying. But it is more of the same from a government that really feels like the rules do not apply to them and their ministers and their class and groups of friends.”
Image: Alok Sharma visited Japan’s prime minister in Tokyo in April when the government had placed the capital in a state of emergency due to rising COVID-19 cases
Liberal Democrat transport spokesperson Sarah Olney echoed this point, adding: “While Alok Sharma flies to red-list countries with abandon, hard-working families can hardly see loved ones or plan holidays as the government changes travel rules on the hoof.”
And Green party peer Baroness Jones of Moulsecoomb said the trips were “excessive”.
“When you’re in charge of COP26, to take this many flights is hypocritical,” she said.
The revelations come as the UK prepares to cost the COP26 global environment summit this autumn – now less than 100 days away.
Ministers are hoping to use the event to get countries around the world to try to agree measures to slash carbon emissions and limit global warming.
Mr Sharma’s thousands of air miles in the past year have been seen as hypocritical in this light, with the aviation industry responsible for 2% of all human-induced carbon dioxide emissions, according to the air transport action group.
The climate minister’s Instagram feed shows him travelling to various countries, including India in February and Bolivia and Brazil more recently – both of which are currently on the government’s red list.
Other reported red list destinations have included Qatar, the United Arab Emirates, Bangladesh and Turkey.
The government says Mr Sharma is tasked with securing commitments from key nations as he prepares to host the climate summit in Glasgow later this year which has required some international travel.
But there has also been some backlash against the COP26 president’s exemption from quarantine when travelling back from red list countries.
Under government guidelines, those travelling back from the 33 higher risk countries – including Bolivia and Brazil – face a mandatory 10-day stay in a quarantine hotel at a cost of £2,285 – upped from £1,750 in the latest government travel update.
But as a “crown servant”, which encompasses ministers as well as diplomats and defence or border security officials, Mr Sharma does not have to isolate as part of an exemption written into the COVID travel rules.
The guidelines for returning from red list countries states: ‘You need to quarantine in a government approved hotel if you have been in a country on the travel ban red list in the 10 days before you arrive in the UK unless a relevant department of the UK government has certified that you are not required to do so and are:
a crown servant or government contractor travelling to the UK for essential government work or returning from such work outside the UK
returning from conducting essential state business outside of the UK
returning to the UK where this is necessary to facilitate the functioning of a diplomatic mission or consular post of Her Majesty or of a military/other official posting on behalf of Her Majesty
It adds that the ‘relevant government department’ will issue a letter certifying that someone falls into one of the above categories and is therefore exempt from hotel quarantine.
Those exempt are still expected to complete COVID tests on day 2 and day 8 ‘where reasonably practicable’, but do not need to complete the mandatory testing requirements if a relevant department of the UK government has certified that they are ‘a crown servant or government contractor travelling for essential government work’ or ‘returning from conducting essential state business’.
Government sources told Sky News: “Face to face diplomacy is vital to securing commitments from key countries at COP26.
“All UK government ministers who travel abroad are subject to the same rules on quarantine and to a covid secure testing regime.”
A government spokesperson added: “Helping the world tackle the climate emergency is an international priority for the government.
“Virtual meetings play a large part, however face to face meetings are key to success in the climate negotiations the UK is leading as hosts of COP26 and are crucial to understanding first-hand the opportunities and challenges other countries are facing in the fight against climate change.”
Sky News has approached Mr Sharma’s office for comment.
Employees who were furloughed during the US government shutdown are expected to return to work at the Securities and Exchange Commission and Commodity Futures Trading Commission after 43 days away.
According to the operations plans with the SEC and CFTC, staff are expected to return on Thursday, following US President Donald Trump’s signing of a funding bill late on Wednesday to resume federal operations.
The two agencies’ respective plans require employees to come in on the “next regularly scheduled workday […] following enactment of appropriations legislation,” which acting CFTC chair Caroline Pham appeared to confirm in a Thursday X post.
Amid the government shutdown, both agencies had fewer staff and reduced operations. In the SEC’s case, this limited its ability to review applications for exchange-traded funds, including those tied to cryptocurrencies. The CFTC’s plan said it would “cease the vast bulk of its operations,” including enforcement, market oversight and work on regulatory rulemaking.
With the reopening of the government, however, the SEC and CFTC may need some time to catch up on activities, such as reviewing registration applications submitted in the previous 43 days. Some companies submitted IPO and ETF applications amid reports that the shutdown would likely end soon.
“I’m sure some [companies] took the position that they could just submit [an application to the SEC] knowing it’s not going to be looked at until they get back, but at least they’re in the queue,” Jay Dubow, a partner at law firm Troutman Pepper Locke, told Cointelegraph.
He also warned of the possible ramifications of the SEC going through repeated shutdowns:
“Every time you go through something like this, there’s the risk of things just slipping through the cracks in various ways.”
During the shutdown, officials with both financial regulators regularly spoke at conferences on their approach to cryptocurrencies, sometimes commenting on their availability and addressing the reduced operations.
“Within limits, we’re still obviously functioning,” said SEC Chair Paul Atkins on Oct. 7, less than a week into the lapse in appropriations. “There are restrictions on what we can and can’t do, especially for staff […] I can still come and do things like this [referring to the conference].”
Before the funding bill had been resolved, Akins said that the SEC planned to consider “establishing a token taxonomy” in the coming months, “anchored” in the Howey test to recognize that “investment contracts can come to an end.” Pham, similarly, said the CFTC had been pushing for approval of leveraged spot cryptocurrency trading as early as December.
Prospective CFTC chair scheduled for Senate hearing
Michael Selig, who serves as chief counsel for the SEC’s crypto task force, is scheduled to appear before the Senate Agriculture Committee on Wednesday as part of Trump’s push to have him confirmed as the next CFTC chair. Though the hearing could likely have moved forward amid the shutdown, Selig’s authority with the agency, had he been confirmed, would have been severely limited.
Pham is expected to leave her position as acting chair should the Senate confirm Selig. However, even if he were to be installed quickly, the CFTC would still face a dearth of leadership, with only one Senate-confirmed commissioner out of the usual five.
The United Kingdom needs to regulate and encourage the development of British pound stablecoins to keep the country’s financial services sector globally competitive, according to Mark Fairless, the group CEO of bank infrastructure and fintech company ClearBank.
“Stablecoins are a logical extension to reduce friction in international global payments,” Fairless told Cointelegraph in an interview at Web Summit 2025 in Lisbon, Portugal.
He said that pound stablecoins will never equal the market capitalization of dollar or euro-denominated tokens because it isn’t a global reserve currency.
Dollar-denominated stablecoins account for about $299.4 billion of the nearly $300 billion total stablecoin market cap. Source: RWA.XYZ
However, the UK needs a British pound stablecoin to remain commercially competitive as the world shifts to onchain finance and internet capital markets, Fairless said. He told Cointelegraph:
“From a capability perspective for the UK, the ability to settle payments internationally in real time requires a GBP stablecoin, and if we don’t have one, we risk falling behind other financial sectors.
“The financial services market in the UK is one of our strongest parts of the economy, and so, stablecoins are a logical place to go next,” he said, adding that the effect of stablecoins on the banking sector and traditional business models remains to be seen.
Stablecoins have become geostrategically relevant as governments respond to growing pressure to place their fiat currencies onchain to remain competitive with countries that integrate digital and blockchain rails into their economies.
Bank of England vows to keep pace with the US on stablecoins
Sarah Breeden, deputy governor for the Bank of England, the UK’s central bank, said the country will keep pace with US stablecoin regulations and work closely with international partners to synchronize regulatory efforts.
Breeden also urged a cautious approach and warned against loosening stablecoin regulations to the point where the asset class poses a systemic risk to the banking sector.
Bank of England stablecoin regulatory framework timeline. Source: Bank of England
The proposal included potential reserve requirements, asset taxonomy, and risk management regulations for stablecoin issuers and is open for industry feedback until February 2026, with finalized regulations expected in the second half of the year.
The Fed’s Dec. 9-10 meeting carries unusual weight as markets wait to see whether another rate cut will arrive before Christmas, shaping bonds, equities and crypto.
After two cuts in 2025, rates now sit at 3.75%-4.00%. Labor weakness and softer inflation support further easing, but officials remain divided because inflation risks have not fully cleared.
A cooling job market, easing inflation and the end of quantitative tightening could justify another reduction and align with year-end liquidity needs.
Sticky inflation, gaps in economic data caused by the government shutdown and a divided Fed may push policymakers to keep rates unchanged this December.
When the US Federal Reserve meets on Dec. 9-10 to decide on interest rates, it will not be just another routine gathering. Markets are watching closely to see what direction policymakers choose. Will the Fed cut rates again before the holidays? A pre-Christmas Eve reduction could send waves through bonds, stocks, credit markets and crypto.
This article explains why the Fed’s pre-Christmas meeting is significant and outlines the factors supporting or opposing a potential rate cut. It also highlights what to watch in the coming weeks and how a Fed move could affect crypto and other financial markets.
The background of a December rate cut
Central banks typically cut rates when inflation is easing, economic growth slows or financial conditions become too tight. In late October, the Federal Reserve lowered rates by 25 basis points, setting the federal funds target range at 3.75%-4.00%, its lowest level since 2022. The move followed another 25-basis-point cut in September 2025, making it the Fed’s second rate reduction of the year.
The move came amid clear signs of a cooling labor market. October recorded one of the worst monthly layoff totals in more than two decades, according to multiple labor-market reports, reinforcing concerns about weakening job conditions. The Fed’s October statement echoed this trend, noting that risks to employment had increased even as inflation remained somewhat elevated.
At a press conference, Fed Chair Jerome Powell stressed that a December cut is “not a foregone conclusion.” Yet economists at Goldman Sachs still expect a cut, pointing to clear signs of labor market weakness. Fed officials remain divided, with some emphasizing inflation risks and the limited room for further easing.
A December rate cut is possible, but it is not guaranteed.
Factors supporting a potential rate cut
There are several reasons the Fed may decide to cut rates:
Cooling labor market: Private sector data shows softer hiring, rising layoffs and a slight increase in unemployment.
Moderating inflation: Inflation is still above target but continues to trend lower, giving the Fed more flexibility to ease policy.
Ending quantitative tightening: The Fed has announced it will stop reducing the size of its balance sheet beginning Dec. 1.
Pre-holiday timing: A rate cut would align with year-end liquidity needs and help set expectations for 2026.
Arguments for the Fed to postpone action
Several factors suggest the Fed may delay a rate cut in the near future:
Sticky inflation: According to the Fed’s latest statement, the inflation rate remains “somewhat elevated.”
Data vacuum: The US government shutdown has delayed key employment and inflation reports, making policy assessments more difficult.
Committee division: Federal Reserve officials are split on the appropriate path forward, which encourages a more cautious approach.
Limited room for easing: After multiple cuts this year, some analysts argue that policy is already close to a neutral level.
Did you know? In March 2020, the Fed cut interest rates to near zero to respond to the COVID-19 crisis. It lowered rates by a total of 1.5 percentage points across its meetings on March 3 and March 15.
What to monitor before December
These factors are likely to shape the Fed’s upcoming policy decision on rate cuts:
Nonfarm payrolls and unemployment: Is the job market continuing to slow?
Inflation data: Any unexpected rise in inflation will reduce expectations for policy easing.
Financial conditions and market signals: Are credit spreads widening, and is overall market liquidity tightening?
Fed communications: Differences of opinion within the Federal Open Market Committee (FOMC) may influence the outcome.
External shocks: Trade developments, geopolitical risks or sudden supply disruptions could shift the Fed’s approach.
Did you know? US stocks have historically returned about 11% in the 12 months after the Fed begins cutting rates.
How a Federal Reserve cut may impact crypto
Fed rate cuts increase global liquidity and often push investors toward riskier assets like crypto in search of higher returns. Bitcoin (BTC) and Ether (ETH) tend to benefit from stronger risk appetite and rising institutional inflows. Lower decentralized finance (DeFi) borrowing rates also encourage more leverage and trading activity. Stablecoins may see greater use in payments, although their yield advantage narrows when rates fall.
However, if a rate cut is interpreted as a signal of recession, crypto may experience equity-like volatility. Markets might see an initial boost from easier liquidity, followed by a pullback driven by broader macro concerns. If global financial conditions loosen instead, the environment could support further crypto demand.
Lower borrowing costs make it easier for people and institutions to take investment risks, which can draw more interest toward digital assets. As more money flows into the sector, crypto companies can build better tools and services, helping the industry connect more smoothly with the rest of the financial system.
Did you know? When the Fed cuts rates, short-term bond yields usually fall first, creating opportunities for traders who track movements in the yield curve.
Consequences of a Fed rate cut on other financial sectors
Here is a look at the potential effects on major asset classes if the Fed cuts interest rates:
Bonds and yields: Short-term yields will likely decline as markets adjust their expectations. The yield curve may steepen if long-term yields remain stabler than short-term ones, which can signal confidence in future growth. If the cut is viewed as a sign of recession risk, long-term yields may fall as well, resulting in a flattening or even an inversion of the curve.
US dollar and global FX: A rate cut generally weakens the dollar because interest rate differentials narrow. This often supports emerging markets and commodity-exporting countries. If the cut is driven by concerns about economic growth, safe-haven demand may temporarily push the dollar higher.
Equities: A pre-Christmas Eve rate cut could spark a rally in US stocks if investors see it as a sign of confidence in a soft landing. A soft landing refers to cooling inflation alongside a stable labor market. If the cut is motivated by growth worries instead, corporate earnings may come under pressure, and defensive sectors could outperform cyclical ones.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.