‘Freedoms need to be defended’: Truss hails AUKUS submarine deal amid deepening row with France

Published

4 years ago

September 19, 2021

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New Foreign Secretary Liz Truss has defended the UK’s “hard-headed” security pact with the US and Australia, amid a deepening diplomatic row with France.

The AUKUS deal saw the UK, Australia and the US form a security pact to develop and deploy a new fleet of nuclear-powered submarines, adding to the Western military presence in the Pacific region.

Ms Truss said the agreement showed Britain’s readiness to be “hard-headed in defending our interests”, adding that it could result in hundreds of new jobs.

France was outraged by the deal which sees them losing out on a £30bn contract to supply conventional submarines to Australia, who opted for nuclear-powered subs provided by Britain and the US.

In response, they recalled their ambassadors to the US and Australia, although there was no similar order to return to Paris for the French envoy to London.

Writing in The Sunday Telegraph, Ms Truss made no mention of the diplomatic stand-off with the French.

Earlier, however, a French minister scornfully referred to the UK as the “junior partner” in the trilateral agreement and accused it of returning to hide in the “American lap”.

It comes after Gerard Araud, a former French ambassador to the US, referenced the omission of UK from the ambassador recall.

He wrote on Twitter: “You can interpret the omission of the UK as a sign of conciliation or contempt. Your choice.”

In her article, Ms Truss said the agreement, widely seen as a counter to increasing Chinese military assertiveness in the region, underlined the UK’s commitment to the Indo-Pacific.

She said Britain would always be a “fierce champion” of freedom and that the agreement illustrates the nation’s commitment to “challenging unfair practices and malign acts”.

“Freedoms need to be defended, so we are also building strong security ties around the world,” she wrote.

“That is why last week the prime minister announced, alongside our friends President Biden and Prime Minister Morrison, the creation of a new security partnership called AUKUS.

“It shows our readiness to be hard-headed in defending our interests and challenging unfair practices and malign acts.”

On Saturday, the president of the French National Assembly told Sky News that the bonds of friendship between France and the UK, US and Australia have been “tarnished” by the AUKUS pact.

Speaking while attending the G7 Speakers’ Conference in Chorley, Lancashire, Richard Ferrand said: “I think it has somewhat tarnished the bonds of friendship that we have. Yes, it has made things more difficult in terms of trust and friendship.”

Pressed on why Catherine Colonna, the top French diplomat in the UK was not recalled, Mr Ferrand said: “Obviously it was not my decision but we thought it was more important to recall the ambassadors of the two main protagonists in this thing.”

Andreas Michaelis, Germany’s ambassador to the UK, has suggested the AUKUS agreement threatens the “coherence and unity of the West”.

In the Commons on Thursday, Boris Johnson sought to smooth over the differences, insisting relations with France remained “rock solid” while Downing Street described Paris as “a close ally and friend” of the UK.

Nevertheless, the prime minister also made clear he expected the agreement to bring “hundreds” of highly-skilled jobs to Britain – jobs which may well have otherwise gone to France.

Ms Truss said the deal could “create hundreds of new and high-skilled jobs, from the shipyards of Govan to the factories of Tyneside”.

The French were reportedly given just a few hours’ notice of the new agreement ahead of what is expected to be a tough election year for Mr Macron.

French foreign minister Jean-Yves Le Drian said the snub was a “stab in the back” and constituted “unacceptable behaviour between allies and partners”.

The pact between the UK, US and Australia has been widely seen as an attempt to counter the growing military assertiveness of China in the Indo-Pacific region.

Beijing swiftly denounced the initiative as “extremely irresponsible” and a threat to regional peace and stability.

Mr Johnson, however, said it was not intended as an “adversarial” move against China or any other power.

Politics

Canada ‘got it wrong’ labeling stablecoins securities — NDAX exec

Published

2 hours ago

May 14, 2025

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<div>Canada 'got it wrong' labeling stablecoins securities — NDAX exec</div>

Tanim Rasul, chief operating officer at Canadian crypto exchange NDAX, said Canada “got it wrong” categorizing stablecoins as securities in 2022, and the country needs to realize that every other regulatory regime is looking at stablecoins as payment instruments.

Rasul made the remarks during a panel on May 13 at the Blockchain Futurist Conference in Toronto, pointing to Europe’s crypto regulatory framework as a model for Canada to consider:

“I’m sure the regulators are wondering if this was the right choice to approach stablecoins as a security. […] I would just say, look at MiCA, look at the way they’re approaching stablecoins. It’s a payment instrument. It should be regulated as such.”

The Canadian Securities Administrators (CSA) classified stablecoins as “securities and/or derivatives” in December 2022, following “recent events in the crypto market,” such as the dramatic collapse of crypto exchange FTX just a month before.

Canada, Cryptocurrency Exchange, Stablecoin — *Canadian Web3 Regulation panel at Blockchain Futurist Conference. Source: Cointelegraph*

The agency elaborated on stablecoin rules in February and October of 2023, placing such tokens under the umbrella of “value-referenced crypto assets.”

Canada’s stance on digital assets led many top crypto companies, including Binance, Bybit, OKX, and Paxos, to scale back operations in the local market. Crypto exchange Gemini also announced exit plans in September 2024.

The regulatory setback, however, hasn’t stopped Canada’s digital asset market from flourishing. According to Grand View Research, the local crypto industry posted revenue of $224 million in 2024, higher than in previous years. It is expected to grow at a compound annual growth rate of 18.6% until 2030, when it is forecast to reach $617.5 million in annual revenue.

Stablecoins have emerged as key crypto use case

Stablecoins, cryptocurrencies pegged to a fiat currency, have emerged as a key use case for digital assets. According to DefiLlama, the current market capitalization for all stablecoins is at $242.8 billion as of May 14, up 51.9% in the past 12 months.

Nation-states and economic blocs are increasingly working on stablecoin regulations to tackle the rising usage across the world. While the most used stablecoins are pegged to the US dollar, there is demand for stablecoins pegged to other fiat currencies.

Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Politics

CFTC commissioner will step down to become Blockchain Association CEO

Published

4 hours ago

May 14, 2025

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CFTC commissioner will step down to become Blockchain Association CEO

Summer Mersinger, one of four commissioners currently serving at the US financial regulatory body Commodity Futures Trading Commission (CFTC), will become the next CEO of the digital asset advocacy group the Blockchain Association (BA).

In a May 14 notice, the Blockchain Association said its current CEO, Kristin Smith, would step down for Mersinger on May 16, allowing an interim head of the group to work until the CFTC commissioner assumes the role on June 2. Though her term at the CFTC was expected to last until April 2028, the BA said Mersinger is set to leave the agency on May 30.

The departure of Mersinger, who has served in one of the CFTC’s Republican seats since 2022, opens the way for US President Donald Trump to nominate another member to the financial regulator. Rules require that no more than three commissioners belong to the same political party.

Like the Securities and Exchange Commission, the CFTC is one of the significant US financial regulators whose policies impact digital assets. Lawmakers in Congress are currently working to pass a market structure bill to clarify the roles each agency could take in overseeing and regulating crypto.

New leadership at the Blockchain Association had been expected since Smith announced her departure on April 1 to become the next president of the Solana Policy Institute. A spokesperson for the Blockchain Association had not responded to Cointelegraph’s request for comment at the time of publication.

Some of the biggest crypto firms in the US, including Coinbase, Ripple Labs and Chainlink Labs, are members of the Association. The organization “support[s] a future-forward, pro-innovation national policy and regulatory framework for the crypto economy,” according to its website.

Changing the leadership at a major US financial regulator

A nominee of former US President Joe Biden, Mersinger has called for standardized crypto-related policies and said the CFTC was the “ideal regulator for the cryptocurrency spot market.” Some expected she would lead the regulator following the election of Trump and the departure of then-CFTC Chair Rostin Behnam, but Commissioner Caroline Pham took on the role in an acting capacity in January.

Trump chose former commissioner Brian Quintenz to chair the CFTC in February, but his nomination has not moved through the Senate for a vote in roughly three months. Commissioner Christy Goldsmith Romero reportedly said she plans to leave the agency once Quintenz is confirmed, potentially giving Trump the chance to nominate three new commissioners to fill the five-seat panel.

Any CFTC commissioner picked by the president needs a majority vote in the Senate to be confirmed for a five-year term or to fill in for a resigning member.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Politics

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

Published

7 hours ago

May 14, 2025

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Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

Bitcoin’s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress.

Bitcoin (BTC) exhibited a strong negative correlation with the US stock market when analyzing the short-term, seven-day trailing correlation, according to new research from blockchain data provider RedStone Oracles, shared exclusively with Cointelegraph.

However, RedStone said that the 30-day indicator signals a “variable correlation” between Bitcoin price and the S&P 500 index, with the correlation coefficient ranging from -0.2 to 0.4.

This fluctuating correlation suggests that Bitcoin “doesn’t consistently function as a true hedge for equities” due to its lack of a strong negative correlation below -0.3, which is needed for “reliable counter movement during market stress,” the report said.

The research suggests that while Bitcoin may not be a dependable hedge against stock market declines, it offers value as a portfolio diversifier.

This fluctuating dynamic signals that Bitcoin often moves independently from other assets, potentially offering additional returns while other assets are struggling. Still, Bitcoin has yet to mirror the safe-haven dynamics of gold and government bonds, RedStone suggests.

Bitcoin needs to “mature” before decoupling from stock market

While Bitcoin is poised to grow into a safe-haven asset in the future, the world’s first cryptocurrency still needs to “mature” as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer at RedStone.

“Bitcoin still needs to mature before decoupling from stock markets,” Kazmierczak told Cointelegraph, adding:

“Increased institutional adoption will absolutely help — we’re already seeing this effect with corporate treasury investments reducing Bitcoin’s 30-day volatility and with BlackRock repetitively praising BTC as an asset in a portfolio.”

Meanwhile, Bitcoin will see growing recognition as a portfolio diversifier, with an annualized return of over 230% for the past five years, which “significantly outperformed” both stocks and traditional safe-haven assets, Kazmierczak said, adding that “even a small 1–5% Bitcoin allocation can meaningfully enhance a portfolio’s risk-adjusted returns.”

Meanwhile, Bitcoin’s declining volatility supports BTC’s growing maturity as a global financial asset. Bitcoin’s weekly volatility hit a 563-day low on April 30, a development that may signal more stable price action.

Bitcoin’s price volatility fell below the realized volatility of the S&P 500 and the Nasdaq 100, signaling that investors are increasingly treating Bitcoin as a long-term investment vehicle, Cointelegraph reported on May 13.