This week Sky News has been identifying the gaps in Britain’s border defences.
As the number of small boats crossing the Channel breaks new records and European countries brace for a new wave of people fleeing Afghanistan, the issue is rising up the public consciousness once more.
Ministers are meant to be able now to deliver on their promise to take back control post Brexit. So why does it not yet feel like that to some?
The government response to this issue is being led by Home Secretary Priti Patel. Nobody would doubt her right-wing credentials, and interestingly she has had plaudits from across the political spectrum for her handling of the migration aspects of the Afghanistan crisis.
Image: Home Secretary Priti Patel talking to a refugee from Afghanistan who arrived on a evacuation flight at Heathrow Pic: AP
Her answer to the questions around Britain’s borders is the Nationality and Borders Bill currently in committee stage in the House of Commons. But does it answer the problems, many of which are caused beyond Britain’s borders?
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Italian island is migrant gateway to EU
Tom Tugendhat, Tory chair of the foreign affairs select committee told Sky News the answer is to send more Royal Navy vessels to help in the Med.
More on Asylum
“Our great strength we have with NATO allies around is that our border doesn’t start at Dover, it starts at the southern tip of Italy and Greece – working together and making sure these borders are defended and reinforced is exactly what we should be doing… but need to do more.
“Not about being kind to Italians. Its about defending ourselves further out.”
The Nationality and Borders Bill tightens the penalties for people smugglers in an attempt to tackle the problem.
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Tracking migrants with French Border Police
Another issue comes when migrants who have made it to the EU then try and cross the Channel to Britain. Sky News’ Michelle Clifford found that while French authorities would stop anyone still on land who looked like they would be attempting to cross the Channel, they would not stop boats once they were in the water, even when it was under French control.
They blame international law, thought many in Britain including MPs on the home affairs select committee claim the French are wrongly interpreting this.
Tim Loughton, Tory member of the home affairs select committee, said the French interpretation was “completely wrong”.
He added “We have evidence from maritime international lawyers – they made it clear that French authorities have power to intercept and repatriate passengers on boats, but actually have an obligation under international law – people on boats guilty of trying to enter UK illegally and paying organised crime to facilitate that journey, that would give grounds to French authorities to apprehend people, that is only what is going to stop that horrendous trade – people paying money to people smugglers, highly likely with them being taking back…that could stop that miserable trade stone dead.”
Asked why the British government hasn’t succeeded in convincing French they’re wrong, he said: “It’s all excuses, we made it clear – French claiming it’s a different interpretation, that’s wrong – also internal politics going on, a big row with those who run Calais and the federal government. They’re each trying to make it each other’s problem.”
The Nationality and Borders Bill will mark a serious attempt to block illegal immigration, alongside the new post Brexit points based entry system.
It will make it easier to return some illegal asylum seekers more quickly, make some asylum seekers apply before they reach UK shores and give border officials powers to turn back boats in UK waters.
But this does not – and cannot – stop Britain being an attractive country for economic migrants and asylum seekers.
Alp Mehmet, Chairman of Migration Watch said that Britain would remain a country many aspire to live in so more had to be done to turn back illegal arrivals.
“Britain is an attractive country, so is France, US – most people wanted to got to the US first, we are part of wider picture of prosperous civilised fun countries.
“A lot of those coming are young man who want a better life – we are part of the story, in a way we have create the opportunity for a lot of Afghans to want to come here.”
But he added that once here, many were treated generously with little chance of being sent back.
“One of the principle reasons why the traffickers are able to sell Britain as the destination of choice is that having arrived here there’s very little chance of being sent back – very few people who apply for asylum and fail actually are sent back.
“That is a huge factor, while they’re here, we look after – hotels, detention centres that have been used – even these are not bad accommodations, there is a bit of money given for people to spend.
“Once you’re in the system you’re looked after – people see messages coming across, it is all made to be very attractive.”
Update (Dec. 11 at 7:35 pm UTC): This article has been updated to include a Thursday policy announcement from Caroline Pham.
The top Republican on the Senate Agriculture Committee said the full chamber could vote on US President Donald Trump’s pick to chair the Commodity Futures Trading Commission “maybe as soon as this afternoon.”
In a prepared statement for a Thursday hearing on CFTC reauthorization, Committee Chair Glenn Thompson said the Senate could vote on Michael Selig’s nomination to chair the agency on Thursday. The potential vote would come just a few weeks after the Agriculture Committee advanced Selig’s nomination to the full chamber, along partisan lines.
According to the Senate’s calendar of business, a vote on Selig’s nomination did not appear on the schedule for Thursday. The chamber is expected to break for the holidays on Dec. 22, giving lawmakers a limited window to confirm the prospective CFTC chair.
Selig, whom Trump nominated as CFTC chair in November following the withdrawal of his former pick, Brian Quintenz, faced lawmakers in a November hearing. The prospective chair said it was “vitally important that [the CFTC] have a cop on the beat” for addressing crypto regulation and enforcement.
Acting CFTC Chair Caroline Pham has been the sole commissioner at the financial regulator for months, following the resignation or departure of every member of its leadership due to their terms expiring. Pham is also expected to leave once the Senate confirms a replacement chair, potentially leaving Selig as the sole member.
Pham is still pushing for crypto in her final days
Although it’s unclear when Pham may leave the CFTC, the acting chair has continued to push the Trump administration’s agenda on digital assets by advocating for policies that favor the industry and bringing executives in closer.
On Thursday, the acting chair said she planned to withdraw the CFTC’s “outdated” guidance on digital assets, claiming it “penalizes the crypto industry and stifles innovation.”
Mexico’s central bank warned in a new financial stability report that “stablecoins pose significant potential risks to financial stability,” citing their rapid growth, links to traditional finance and global regulatory gaps that could fuel arbitrage and magnify market stress.
Stablecoins’ heavy reliance on short-term US Treasurys, market concentration with two issuers controlling 86% of the supply and past depegging episodes with stablecoins underscore how vulnerable the sector remains to stress, according to the Banxico report.
Without coordinated international safeguards, mass redemptions or issuer failures could spill into broader funding markets, the central bank warned.
Banxico also highlighted diverging regulatory approaches as a growing source of risk, noting that frameworks like the EU’s MiCA and the US GENIUS Act impose different reserve, redemption and depositor-protection requirements, creating regulatory gaps that could incentivize arbitrage across jurisdictions.
Banxico acknowledged that stablecoins can improve settlement efficiency, reduce transfer costs and support remittances and liquidity in decentralized finance. However, it plans to keep a cautious distance between the traditional financial system and virtual assets, citing their potential to cause stress in broader markets.
Crypto adoption in Mexico is relatively low. According to Chainalysis’ Global Crypto Adoption Index, the country fell to 23rd place in 2025 from 14th place in 2024 in the adoption ranking.
The central bank’s warning reflects Mexico’s broader cautious stance on crypto. Despite the rise of exchanges like Bitso, the country has not introduced significant new digital-asset legislation and still relies on its 2018 Fintech Law as the primary regulatory framework.
Brazil and Argentina lead Latin America in crypto adoption
While Mexico’s central bank maintains a cautious stance on digital assets, other Latin American countries have embraced adoption.
Chainalysis’ 2025 Geography of Crypto Report shows that Latin America generated nearly $1.5 trillion in crypto transaction volume from July 2022 to June 2025, with monthly activity increasing to almost $88 billion by December 2024 from $20.8 billion in mid-2022. Several months in late 2024 and early 2025 consistently exceeded $60 billion.
According to the report, Brazil led Latin America by a wide margin, receiving $318.8 billion in crypto value from July 2022 to June 2025, nearly one-third of all activity in the region, while Argentina ranked second with $93.9 billion in transaction volume.
The central banks of the two leading countries are also taking a more proactive stance in regulating digital assets.
In November, Brazil’s central bank finalized rules that place crypto companies under banking-style supervision, including treating stablecoin transactions and certain self-custody wallet transfers as foreign exchange operations.
SEC Commissioner Caroline Crenshaw, expected to leave the agency in less than a month, used one of her final public speaking engagements to address the regulator’s response to digital assets.
Speaking at a Brookings Institution event on Thursday, Crenshaw said standards at the SEC had “eroded” in the last year, with “markets [starting] to look like casinos,” and “chaos” as the agency dismissed many years-long enforcement cases, reduced civil penalties and filed fewer actions overall.
The commissioner, expected to depart in January after her term officially ended in June 2024, also criticized many crypto users and the agency’s response to the markets.
SEC Commissioner Caroline Crenshaw speaking at a Brookings Institution event on Thursday. Source: Brookings
“People invest in crypto because they see some others getting rich overnight,” said Crenshaw. “Less visible are the more common stories of people losing their shirts. One thing that consistently puzzles me about crypto is what are cryptocurrency prices based on? Many, but not all, crypto purchasers are not trading based on economic fundamentals.”
She added:
“I think it’s safe to say [crypto purchasers are] speculating, reacting to hysteria from promoters, feeding a desire to gamble, wash trading to push up prices, or, as one Nobel laureate has posited, ‘betting on the popularity of the politicians who support or stand to benefit from the success of crypto.’”
In contrast to Crenshaw’s remarks, SEC Chair Paul Atkins, Commissioner Hester Peirce and Commissioner Mark Uyeda have all publicly expressed their support for the agency’s approach to digital assets and the Trump administration’s direction of policy.
Peirce and Atkins spoke at a Blockchain Association Policy Summit this week to discuss crypto regulation and a path forward on market structure under consideration in the Senate.
During the Thursday event’s question-and-answer session, Crenshaw expanded on her views of crypto, stating that it was a “tiny piece of the market,” and suggested that the SEC focus on other regulatory concerns. In addition, she expressed concern that the agency was heading toward giving crypto companies an exception from policies that applied to traditional finance.
“I do worry that as the crypto rules are perhaps implemented, or perhaps we just put out more guidance […] where we say they are not securities, where we loosen the basic fundamentals of the securities laws so that they can operate in our system, but without any of the guardrails that we have in place. I do worry that that can lead to more significant market contagion,” said Crenshaw.
The final throes of bipartisan financial regulators under Trump?
The departure of Crenshaw would leave the SEC with three Republican commissioners, two of whom were nominated by US President Donald Trump. As of Thursday, Trump had not made any announcements signaling that he ever planned to nominate another Democrat to the SEC, and Crenshaw said the agency’s staff had been reduced by about 20% in the last year.
The Commodity Futures Trading Commission also faces a dearth of leadership, with many commissioners leaving the agency in 2025. As of December, acting Chair Caroline Pham was the sole remaining CFTC commissioner and a Republican. However, the US Senate is soon expected to vote on Trump’s nominee, Michael Selig, to chair the agency after Pham.