Boris Johnson is being warned against triggering Article 16 of the Northern Ireland Protocol to suspend parts of post-Brexit arrangements for the Irish border.
There is growing speculation that the prime minister could soon trigger Article 16 as ongoing talks between the EU and UK continue to fail to resolve problems such as the “sausage war” and other issues.
Image: There is growing speculation that Boris Johnson could trigger Article 16
However, Mr Johnson has been given fresh warnings about the impact of invoking Article 16.
Sinn Fein president Mary Lou McDonald said the activation of Article 16 by the UK could put at risk the entire Brexit withdrawal deal.
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“It would demonstrate just again colossal bad faith and demonstrate again that Ireland, the north of Ireland in particular, is collateral damage in the Tory Brexit as they play games and play a game of chicken with the European institutions,” she told BBC One Northern Ireland’s Sunday Politics programme.
“I would also say that if the British government imagine that they hold all of the cards they are wrong, and they’re playing a very, very dangerous game, up to and including perhaps jeopardising the entire withdrawal agreement.”
Ms McDonald called on the UK government to “act in good faith” and “adopt a position that is serious and that has a long-term view” as she warned of “very grave” consequences.
Meanwhile, Labour leader Sir Keir Starmer said that suspending parts of the Northern Ireland Protocol would not solve the UK-EU dispute.
“I don’t think that triggering Article 16 will resolve the dispute in relation to the protocol in Northern Ireland,” he told the BBC’s Andrew Marr Show.
“That isn’t in the interests of the communities in Northern Ireland or businesses in Northern Ireland. What is in their interests is resolving the issues.
“Because of the way the protocol was drafted, because of what the Prime Minister signed, it is perfectly true that there are checks from Great Britain to Northern Ireland – we want to reduce those.”
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What is the Northern Ireland Protocol?
Sir Keir added: “What I am saying is don’t rip up the protocol because that has that very important central purpose, which is to protect the no border in Northern Ireland.”
The Labour leader also suggested that Mr Johnson was “constantly trying to pick a fight on things like this, so he hopes people don’t look elsewhere in the forest, which are things like the Owen Paterson affair”.
The Northern Ireland Protocol was agreed between the UK and EU as a means of avoiding a hard border on the island of Ireland, and is a key part of the UK’s divorce deal with the EU.
However, the prime minister has said the current implementation of the protocol – which keeps Northern Ireland within much of the EU’s single market and customs rules – is having a “damaging impact” on the people of Northern Ireland.
One flashpoint includes a possible ban on chilled meats – such as sausages – moving from Great Britain to Northern Ireland.
Image: Brexit minister Lord Frost is due to hold more talks with the EU this week
The oversight role of the European Court of Justice in the operation of the Protocol also remains a key sticking point in UK-EU talks.
Brexit minister Lord Frost is due to meet again with European Commission vice-president Maros Sefcovic in London next week.
Following talks between the pair in Brussels on Friday, the UK government said that “progress had been limited” but that “gaps could still be bridged through further intensive discussions”.
Prior to Friday’s meeting with Mr Sefcovic, Lord Frost said: “We’re not going to trigger Article 16 today, but Article 16 is very much on the table and has been since July.”
Excitement in the crypto community is growing over the potential launch of XRP funds, as the US Senate advances a deal aimed at ending the longest-ever government shutdown.
The Senate reportedly reached a deal on a budget bill to end the government shutdown on Sunday, sending a bullish signal to numerous markets, including crypto.
The XRP (XRP) community is anticipating multiple XRP exchange-traded funds (ETFs) to launch shortly, with several already appearing on the Depository Trust and Clearing Corporation (DTCC) website ahead of a possible launch this month.
The price of XRP has rallied more than 12% on the bullish news over the past 24 hours, with the token trading at $2.56 at the time of publication, according to CoinGecko.
11 XRP products listed on DTCC
As of Monday, the DTCC website featured 11 XRP ETF products on its “active and pre-launch” listing, including those by 21Shares, ProShares, Bitwise, Canary Capital, Volatility Shares, REX-Osprey, CoinShares, Amplify and Franklin Templeton.
Although a DTCC listing does not equal actual launch and does not guarantee regulatory approval, it signals that the ETF infrastructure is ready to be traded on US markets.
The list of XRP products listed on the DTCC as of Monday. Source: DTCC
It’s worth noting that Grayscale’s XRP Trust (GXRP) has not yet appeared on the DTCC website, and the list also does not currently include an XRP fund from WisdomTree.
“Government shutdown ending = spot crypto ETF floodgates opening,” ETF expert Nate Geraci wrote in an X post on Sunday, adding: “In the meantime, could see first ‘33 Act spot xrp ETF launch this week.”
Bloomberg ETF analyst Eric Balchunas also posted on X on Sunday, noting that the “shutdown is over” and highlighting a subsequent uptick in US equity futures.
“The SEC had open litigation against Ripple for the past five years, up until three months ago. IMO, the launch of spot XRP ETFs represents the final nail in the coffin for the previous wave of anti-crypto regulators,” he wrote in an X post on Nov. 2.
He also highlighted a post from Canary Capital, which claimed last Friday that its XRP ETF is “coming soon,” speculating that the product could go live by the end of this week.
Acting Chair of the US Commodity Futures Trading Commission (CFTC) Caroline Pham is in talks with regulated US crypto exchanges to launch leveraged spot crypto products as early as next month.
In a Sunday X post, Pham confirmed that she is pushing to allow leveraged spot crypto trading in the US and that she is in talks with regulated US crypto exchanges to launch leveraged crypto spot products next month.
Pham also confirmed that she continued meeting with industry representatives despite the government shutdown. The regulator is also currently considering issuing guidance for leveraged spot crypto products.
The news comes after the CFTC launched an initiative in early August to enable the trading of “spot crypto asset contracts” on exchanges registered with the regulator. In an announcement at the time, Pham invited comment on the rules that governed “retail trading of commodities with leverage, margin, or financing.”
According to the Federal Register, the Commodity Exchange Act “provides that a retail commodity transaction entered into with a retail person which is executed on a leveraged or margined basis” is “subject to the Commission’s jurisdiction, unless the transaction results in actual delivery of the commodity within 28 days of the transaction.” Consequently, leveraged crypto spot positions would only be allowed if their duration were limited to 28 days or they would be illegal.
A US government shutdown occurs when Congress fails to pass an annual spending bill or a short-term continuing resolution, blocking much of the federal government’s spending. In such situations, non-essential services are paused, some workers are furloughed, and others work without pay.
The current shutdown started on Oct. 1. However, Sunday reports suggest that the shutdown is likely nearing its end as the Senate moves to consider a continuing resolution to fund the government.
The US Capitol, housing the US Congress. Source: Wikimedia
The report follows speculation about the impact of the government shutdown on progress in US crypto regulation. Early October reports noted that the SEC began its shutdown by announcing that it would “not engage in ongoing litigation,” except for emergency cases.
The United Kingdom’s central bank is moving toward stablecoin regulation by publishing a consultation paper proposing a regulatory framework for the asset class.
The Bank of England (BoE) on Monday released a proposed regulatory regime for sterling-denominated “systemic stablecoins,” or tokens it said are widely used in payments and therefore potentially pose risks to the UK financial stability.
Under the proposal, the central bank would require stablecoin issuers to back at least 40% of their liabilities with unremunerated deposits at the BoE, while allowing up to 60% in short-term UK government debt.
The consultation paper seeks feedback on the proposed regime until Feb. 10, 2026, with the BoE planning to finalize the regulations in the second half of the year.
Holding limits, backing and oversight
As part of the proposal, the central bank suggested capping individual stablecoin holdings at 20,000 British pounds ($26,300) per token, while allowing exemptions from the proposed 10,000 pound ($13,200) for retail businesses.
“We propose that issuers implement per-coin holding limits of 20,000 GBP for individuals and 10 million pounds for businesses,” the BoE stated, adding that businesses could qualify for exemptions if higher balances are needed in the course of normal operations.
Timeline for regulation on sterling-denominated stablecoins by the Bank of England. Source: BoE
Regarding stablecoin backing, the BoE suggested that issuers that are considered systemically important could be allowed to hold up to 95% of their backing assets in UK government debt securities as they scale.
“The percentage would be reduced to 60% once the stablecoin reaches a scale where this is appropriate to mitigate the risks posed by the stablecoin’s systemic importance without impeding the firm’s viability,” it added.
The BoE noted that His Majesty’s Treasury determines which stablecoin payment systems and service providers are deemed systemically important. Once designated, these systems would fall under the proposed regime and the BoE’s supervision.