Cameron’s lobbying ‘did not take up very significant part’ of Treasury’s time, says Sunak

Published

4 years ago

September 23, 2021

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Dealing with David Cameron’s multiple texts, WhatsApp messages, emails and phone calls “did not take up a very significant part” of the Treasury’s time, Chancellor Rishi Sunak has told MPs investigating the Greensill lobbying scandal.

Earlier this year, ex-prime minister Mr Cameron was revealed to have bombarded government ministers and officials – as well as the Bank of England – with messages in a bid to win a now-collapsed finance firm access to government-backed COVID support schemes.

But, in a letter to MPs on the House of Commons Treasury committee, Mr Sunak dismissed the impact that Mr Cameron‘s actions had on his department’s decisions over Greensill Capital.

The chancellor wrote to the committee following the release of their report on the lobbying scandal in July.

In his response to the committee, Mr Sunak said: “The report expresses doubt that Mr Cameron’s lobbying did not result in the Treasury treating Greensill differently.

“On this I can only reiterate the evidence we have previously given to the committee.

“Greensill and supply chain finance did not take up a very significant part of my time, nor of [Treasury second permanent secretary] Charles Roxburgh’s, nor of the department’s overall, particularly compared with other COVID interventions.

“In line with the committee’s report, it was right to listen to Greensill’s initial proposal, which we promptly rejected.

“Given the acute financing needs of SMEs at the time, it was also right to invest a small proportion of time and resource in exploring the option of an industry-wide solution for supply chain finance.”

The chancellor also told MPs of his belief that the Treasury “acted entirely appropriately in relation to Greensill” and that he was “proud” of his department’s response to the COVID crisis.

Among Mr Cameron’s contacts with government ministers and officials were 14 text messages to the Treasury’s most senior civil servant Tom Scholar; eight WhatsApp messages and two phone calls to Mr Sunak; six texts, one call and one email to Treasury ministers John Glen and Jesse Norman; and two WhatsApp messages to an aide of Mr Sunak.

The Treasury committee previously published a vast number of Mr Cameron’s contacts, but some of Mr Scholar’s replies to the former prime minister were unable to be found when subsequently requested under Freedom of Information laws.

The Treasury said this was due to Mr Scholar’s mobile phone being reset after the device was automatically locked when an incorrect password was entered several times.

It was later revealed the Treasury had wiped all data from more than 100 government-issued mobile phones in 2020 because their users entered the wrong pin.

In its report on the Greensill scandal, the Treasury committee urged the government to review “its policies and use of information technology to prevent the complete deletion of government records by the misremembering of a password to a phone”.

But, in his response to the MPs’ report, Mr Sunak suggested his department would not be making any changes.

“While we accept that, in exceptional circumstances, this security feature could potentially result in the loss of information that may not have been transferred to the departmental record, in the vast majority of cases, all the substantive information held on the device will also be held on Treasury systems,” he wrote.

“Given that the aim of the Treasury’s policy is to ensure that all data is protected in circumstances where a device is either lost or stolen (where it could potentially be in the possession of malign actors), we consider that the balance of risk falls decidedly in favour of retaining the security feature in order to prevent unauthorised access to Treasury information or data, which is often particularly high-profile and sensitive.”

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

Published

47 mins 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

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CFTC commissioner will step down to become Blockchain Association CEO

Published

3 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

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

Published

6 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.