Labour MP quits party’s shadow cabinet with attack on Starmer’s leadership
A Labour MP has dramatically quit the shadow cabinet mid-way through the party’s Brighton conference with an attack on Sir Keir Starmer’s leadership and policies.
Andy McDonald, who had been shadow secretary of state for employment rights and protections, said his position as a member of Sir Keir’s top team had become “untenable”.
The 63-year-old, who has been MP for Middlesbrough since 2012, previously served in former leader Jeremy Corbyn’s shadow cabinet and is a left-wing ally of Sir Keir’s predecessor.
Mr McDonald previously served in Jeremy Corbyn’s top team and is close to the former Labour leader
In a resignation letter to Sir Keir on Monday, Mr McDonald delivered a fierce rebuke of Sir Keir’s leadership and policies.
He claimed he had been told by Sir Keir’s office on Sunday to go into a meeting “to argue against a national minimum wage of £15 an hour and against statutory sick pay at the living wage”.
“This is something I could not do,” Mr McDonald wrote.
“After many months of a pandemic when we made commitments to stand by key workers, I cannot now look these same workers in the eye and tell them they are not worth a wage that is enough to live on, or that they don’t deserve security when they are ill.”
A push for Labour to adopt support for a £15 national minimum wage had been made by left-wing group Momentum and trade unions prior to the party’s conference in Brighton.
In a further attack on Sir Keir in his resignation letter, Mr McDonald added: “I joined your front bench team on the basis of the pledges that you made in the leadership campaign to bring about unity within the party and maintain our commitment to socialist policies.
“After 18 months of your leadership, our movement is more divided than ever and the pledges that you made to the membership are not being honoured.”
Prior to the news of his resignation on Monday, Mr McDonald had been criticised for planning to co-host a conference event with Mr Corbyn, who is currently suspended as a Labour MP as part of an antisemitism row.
Mr McDonald had also used a conference fringe event on Sunday to publicly mock Sir Keir’s efforts to reform Labour’s internal rulebook during this week’s Brighton gathering – moves which have angered Mr Corbyn’s former supporters in the party.
Speaking to reporters in Brighton on Monday afternoon after announcing his resignation, Mr McDonald said: “Is it really unreasonable to expect people going to work, our key workers, not to have a level of pay to sustain their position?”
Asked if he was trying to cause trouble for Sir Keir by resigning during Labour’s conference, Mr McDonald added: “Matters have been made difficult for me. I faithfully tried to discharge my duties as a member of the shadow cabinet on this specific issue and it is a point of principle for me.
“We have got to give that demonstration to the people that we seek to serve. And I just ask that the leadership reflect upon this.”
Sir Keir thanked Mr McDonald for his service as a shadow minister and said Labour’s “New Deal for Working People” showed “the scale of our ambition and where our priorities lie”.
“My focus and that of the whole party is on winning the next general election so we can deliver for working people who need a Labour government,” the Labour leader added.
MPs and activists on Labour’s left wing praised Mr McDonald following his resignation, although those from the centre of the party suggested there was “no sense of loss” over Mr McDonald’s departure and “no tears being shed” in Sir Keir’s office.
They also highlighted how the “change” brought to Labour under Sir Keir had been proved by Mr McDonald leaving the shadow cabinet and Dame Louise Ellman returning to the party on the same day.
Former shadow chancellor John McDonnell, another ally of Mr Corbyn, paid tribute to Mr McDonald’s “terrific” record as a shadow minister.
“He has resigned on a point of principle that workers should have decent pay,” Mr McDonnell posted on Twitter.
Jon Trickett, who had been the party’s national campaign coordinator under Mr Corbyn’s leadership, tweeted: “We need more working class MPs not fewer.
“There is now a chasm between the Labour Party and the communities we want to represent. It must change.”
Momentum, which grew out of Mr Corbyn’s two successful leadership election campaigns, claimed Mr McDonald’s resignation showed how Sir Keir was “out of touch” with working people.
“Labour has to be the party of working people not bosses,”said Mish Rahman, a member of Labour’s ruling National Executive Committee and Momentum’s National Coordinating Group.
“During the leadership election, it seemed like Starmer understood this – but this resignation proves he does not.”
“By asking a shadow minister to argue against a higher minimum wage and decent sick pay he has demonstrated just how put of touch he is with working people.”
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Minutes after McMcDonald’s resignation was announced, an article by Mr Corbyn was published on the website of the i newspaper.
Mr Corbyn wrote that Labour’s leadership had, so far during the conference in Brighton, “shown they want to prop up, not challenge that wealth and power”.
In a tweet promoting his article, Mr Corbyn added: “All over the world people are thirsting for massive social change – we should be part of that global movement, not apart from it.
“If our leadership won’t champion that path, our movement must and will.”
Conservative Party co-chair Oliver Dowden said: “Labour are divided and fighting among themselves. Now they are even resigning during their own party conference!
“Labour’s conference gets more chaotic by the minute. How can people trust them to run the country?”
The decentralized finance (DeFi) industry is breathing a sigh of relief as Congress relaxes reporting obligations, but questions remain about how lawmakers will regulate DeFi.
On March 12, the House of Representatives voted to nullify a rule that required DeFi protocols to report gross proceeds from crypto sales, as well as info on taxpayers involved, to the Internal Revenue Service (IRS).
The rule, which the IRS issued in December 2024 and wasn’t set to take effect until 2027, was regarded by major industry lobby groups as burdensome and beyond the agency’s authority.
The White House has already signaled its support for the bill. President Donald Trump is ready to sign when it reaches his desk. But DeFi observers note that the industry has yet to strike a balance between privacy and regulation.
Bipartisan vote on repealing the rule. Source: DeFi Education Fund
Privacy concerns over IRS DeFi rule
The crypto industry was quick to laud the vote in the House. Marta Belcher, president of the Filecoin Foundation, said that blocking the rule was particularly important for user privacy.
She told Cointelegraph it is “critical to protect people’s ability to transact directly with each other via open-source code (like smart contracts and decentralized exchanges) while remaining anonymous, in the same way that people can transact directly with each other using cash.”
Privacy concerns were central to the crypto industry’s objections to the rule, with industry observers claiming that it was not fit for purpose and infringed on user privacy.
Bill Hughes, senior counsel and director of global regulatory matters for Consensys Software wrote in December 2024, “Trading front ends would have to track and report on user activity — both US persons and non-US persons […] And it applies to the sale of every single digital asset — including NFTs and even stablecoins.”
The Blockchain Association, a major crypto industry lobby group, stated that the rule was “an infringement on the privacy rights of individuals using decentralized technology” that would push DeFi offshore.
While the rule has been stopped for now, there still aren’t fixed privacy guidelines in place — something Etherealize CEO Vivek Raman said the industry needs to move forward.
“There needs to be clear frameworks for blockchain-based privacy while maintaining [Know Your Customer/Anti-Money Laundering] requirements,” he told Cointelegraph.
Raman stated that some transactions and customer data will need to remain private, “and we need guidance on what privacy can look like.”
How do you regulate DeFi?
The crypto space has long juggled user privacy demands and regulators’ Anti-Money Laundering and Know Your Customer concerns.
One problem lies in the technology itself — if a network is created by many and controlled by no single entity, who can the government contact?
Per Raman, “It’s hard for a decentralized protocol that is controlled by nobody to issue 1099s or fulfill broker-dealer responsibilities! Companies can certainly be [broker-dealers], but software has not been designed for [broker-dealer] rules.”
DeFi developers can and have been proactive in working with regulators, Chainalysis suggested, as was the case with certain protocols freezing funds after the disastrous $285 million KuCoin hack.
Related: Timeline: How Bybit’s lost Ethereum went through North Korea’s washing machine
Cinneamhain Ventures partner and consultant Adam Cochran claimed that every protocol has certain pressure points regulators could press on if a protocol were used to commit a crime:
Source: Adam Cochran
However, these specific instances do not make a comprehensive regulatory framework that both the industry and investor protection agencies can point to.
In that regard, crypto analytics firm Chainalysis stated in 2020 that regulators may need to craft regulations for the DeFi space with decentralized reporting limitations in mind.
Raman suggested that one possible solution could be zero-knowledge proofs, which allow users to confirm certain data without revealing it.
He is optimistic about regulators’ ability to find a way to regulate the space while still maintaining user privacy: “I think we’ll see a positive sum environment where DeFi and compliance will coexist.”
The long-awaited crypto regulatory framework
Trump has already made a number of pro-crypto measures through executive orders and appointing pro-crypto individuals to head parts of his administration — the most recent being the establishment of a strategic Bitcoin reserve.
Related: US Rep. Byron Donalds to introduce bill codifying Trump’s Bitcoin reserve
The pro-crypto tenure of important financial regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has dropped a number of high-profile enforcement cases against crypto firms.
While notable, the big fish that the crypto industry is waiting for is the crypto regulatory framework and stablecoin bills circulating in Congress, which would give the industry the guardrails it claims it needs to thrive.
On March 13, the Senate Banking Committee approved the GENIUS Act, the stablecoin bill, putting it one step closer to a vote on the Senate floor.
The crypto framework bill, FIT 21, was first introduced in the 2024 legislative session, ultimately failing in the Senate. However, in February, House Financial Services Committee Chair French Hill said that he anticipated the bill could pass in this session with “modest changes.”
But even if FIT 21 were passed soon, regulations for DeFi could be far off. The bill would exclude DeFi from SEC and CFTC oversight, but it would also establish a working group to research 12 key areas related to DeFi.
This study will seek to understand the risks and benefits of DeFi and will ultimately make regulatory recommendations.
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Hong Kong anticipates the continued growth of its fintech ecosystem, with blockchain, digital assets, distributed ledger technology (DLT) and artificial intelligence playing a central role in shaping its future.
Hong Kong is home to over 1,100 fintech companies. This includes 175 blockchain application or software firms and 111 digital asset and cryptocurrency companies, which marked 250% and 30% increases, respectively, since 2022, according to the Hong Kong Fintech Ecosystem report by InvestHK, a government department overseeing Foreign Direct Investments.
Participants of the Hong Kong Fintech Ecosystem. Source: InvestHK
Exploring deeper fintech revenue streams
The expansive growth of Hong Kong’s Web3 industry is attributed to proactive government policies and an active licensing regime for crypto exchanges or virtual asset trading platforms.
“The revenue for the Hong Kong fintech market is projected to reach US$606 billion by 2032, with an anticipated annual growth rate of 28.5% from 2024 to 2032,” the report stated.
InvestHK, along with other Hong Kong authorities, surveyed 130 fintech companies operating in Hong Kong and identified talent shortage as the top concern in the region, cited by 58.8% of respondents, followed by access to capital at 43.9%.
Related: Coinbase to add 1,000 more US jobs in 2025, thanks to Trump — Brian Armstrong
Addressing these hurdles will be critical to sustaining Hong Kong’s momentum to become the top financial hub.
Over 73% of the surveyed fintech companies operate in the AI subsector, far exceeding the 41.5% focused on digital assets and cryptocurrency.
China’s “one country, two systems” policy at play
The InvestHK report highlighted Hong Kong’s advantage in adopting China’s “one country, two systems” policy, allowing it to maintain a free-market economy, unrestricted capital flow and strong global trade relations while benefiting from its proximity to mainland China.
As a result, the Hong Kong government was able to roll out several Web3 innovations, including a licensing regime, spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds, the Hong Kong Monetary Authority’s stablecoin sandbox and tokenized finance and AI integration.
Hong Kong Monetary Authority’s five-step “Fintech 2025” strategy. Source: HKMA
In 2021, the HKMA unveiled a strategy to establish itself as a financial hub by 2025.
The strategy included encouraging fintech adoption among banks, increasing Hong Kong’s readiness in issuing central bank digital currencies at both wholesale and retail levels, enhancing the city’s existing data infrastructure and building new ones, increasing the supply of fintech talent and formulating supportive policies for the Hong Kong fintech ecosystem.
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A new bill set to be introduced in Congress aims to formalize President Donald Trump’s executive order establishing a US Strategic Bitcoin Reserve, a move that could further integrate Bitcoin into the nation’s financial strategy.
Trump signed an executive order on March 7 to use Bitcoin (BTC) seized in government criminal cases to establish a national reserve.
The legislation, introduced by US Representative Byron Donalds, seeks to ensure the Bitcoin reserve becomes a permanent fixture, preventing future administrations from dismantling it through executive action.
Source: Margo Martin
“For years, the Democrats waged war on crypto,” Donalds, a Florida Republican, said in a statement to Bloomberg. “Now is the time for Congressional Republicans to decisively end this war.”
If the bill is passed, it would ensure that the Strategic Bitcoin Reserve and the US Digital Asset Stockpile could not be eliminated via executive actions by a future administration.
The bill will require at least 60 votes in the Senate and a House majority to pass. With Republicans holding a Senate majority — and amid a generally more crypto-friendly environment — the bill has a chance of passing.
US states with Bitcoin reserve bill propositions. Source: Bitcoinlaws
According to Bitcoinlaws data, at least 23 US states have introduced legislation supporting a Bitcoin reserve, reflecting growing state-level interest in integrating crypto into fiscal policy.
Related: Trump turned crypto from ‘oppressed industry’ to ‘centerpiece’ of US strategy
A “pivotal moment” for US crypto regulations
The introduction of the Bitcoin reserve-related bill marks a pivotal moment for the wider crypto industry, not just BTC.
The legislation “aims to cement the reserve as a permanent fixture, shielding it from reversal by future administrations,” according to Anndy Lian, author and intergovernmental blockchain expert.
The bill signals the US government’s intent to integrate Bitcoin into its financial framework, Lian told Cointelegraph, adding:
“It builds on Trump’s earlier executive action by providing a statutory backbone, potentially clarifying the government’s stance on digital assets. If passed, the bill could reduce uncertainty that has long plagued the crypto space, where agencies like the SEC and CFTC have often clashed over jurisdiction.”
“A codified reserve might encourage a more cohesive regulatory approach, offering businesses and investors a clearer path forward,” he added.
However, identifying the right funding mechanisms and custody solutions for the Bitcoin reserve is a challenging step for governmental entities that may delay the fund’s creation.
Related: European lawmakers silent on US Bitcoin reserve amid digital euro push
The bill may also provide more clarity on the government’s future Bitcoin acquisition strategies. Although the current plan does not involve government Bitcoin purchases, the order does not rule them out.
The order authorizes the US Treasury and Commerce secretaries to develop “budget-neutral strategies” to buy more Bitcoin for the reserve, provided there are no additional costs to taxpayers.
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