Two-child benefit cap: Yvette Cooper refuses to say if she backs Labour’s decision to keep controversial policy
Labour’s Yvette Cooper has refused to say if she supports Sir Keir Starmer’s decision to keep the two-child benefit cap, amid growing party divisions over the issue.
The shadow home secretary said that – while the party wanted to address child poverty – “we’ve got to keep saying how we will pay for things”.
Sir Keir revealed over the weekend that he would keep the two-child benefit cap, which prevents parents fclaiming child benefits for any third or subsequent child born after April 2017.
Clampdown on ‘poor quality’ degrees; Tories struggle as by-elections loom – politics latest
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Labour quiet on public spending
He had previously opposed the limit during his campaign to be Labour leader – prompting accusations of a U-turn from critics.
Sir Keir’s intervention over the weekend also prompted a fresh backlash from his MPs, with Dame Meg Hillier, the chair of the Public Accounts Committee, saying she was “never comfortable about having the child benefit cap come in” and that she would personally lobby for it to be lifted.
Rosie Duffield, the MP for Canterbury, also tweeted that it was one of the “most unpleasant pieces of legislation ever to have been passed in the UK”.
It also emerged that several shadow cabinet ministers have previously spoken out against the policy, with Labour’s deputy leader Angela Rayner describing it as “obscene and inhumane” and Jonathan Ashworth, the shadow work and pensions secretary branding it “heinous”.
Asked whether she personally supported the cap, Ms Cooper avoided the question but repeated that Labour could not make unfunded promises.
And pressed on whether Labour would spend money on public services, she said Labour had already set out areas where it would increase investment, such as funding education through scrapping tax exemptions from private schools and the non-dom tax status.
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RMT boss criticises Keir Starmer
Ms Cooper also cited breakfast clubs, reforming Universal Credit and having a “long-term plan” to get people into work as measures the party would take to slash child poverty.
“We want to invest in our public services, but we’re also being really straight with people about where the funding is going to come from because we know that we’ve got to be really responsible with the public finances, and also show that we can deliver,” she said.
“I think people are fed up of promises that they think can’t be delivered.”
But pushed on whether she supported keeping the cap, Ms Cooper did not answer the question and replied: “We’ve got to be clear about what we can fund and that’s why Keir Starmer set out the position.”
Labour’s stance has prompted fears among some stakeholders, including trade unions, that its offer to the public is not bold enough nor different enough from the Tories going into the next election.
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Sir Keir Starmer hopes to bring state schools up to private standards in first term
Mick Lynch, the general secretary of the RMT union, told Sky’s Sophy Ridge On Sunday programme that Sir Keir should be “saying something about workers’ rights, he should say stuff about funding the NHS … addressing all sorts of stuff about what’s going to happen in the imbalance in our society”.
He added: “It’s a shame that Labour and others can’t show that they’re distinct from the kind of consensus that’s got us into this trouble where working people are struggling, the cost of living crisis seems to be ignored by the political class to certain extent.
“I don’t think Labour’s doing enough, we will be critical of Labour when they don’t do the right stuff and we will be supportive on the occasions that they do.
“And at the minute, many people can’t spot the difference and that’s a shame for somebody who’s probably as talented as Keir Starmer is, he’s got to show that he’s on the side of working people and progressive politics, and I don’t think we’re seeing that.”
US Senator Elizabeth Warren warned that if President Donald Trump eventually moves to fire Federal Reserve Chair Jerome Powell, it could undermine investor confidence in the integrity of US capital markets and trigger a financial crash.
During an appearance on CNBC, the Massachusetts Senator said the President does not have the legal authority to remove Powell from his position. Moreover, removing Powell would weaken the financial infrastructure of the US, Warren added:
“If Chairman Powell can be fired by the President of the United States, it will crash the markets. The infrastructure that keeps this stock market strong and, therefore, a big part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics.”
“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us from any other two-bit dictatorship,” Warren continued.
President Trump has repeatedly called for Powell’s termination, citing the chairman’s hesitancy to lower interest rates. Lower interest rates are usually considered a positive catalyst for risk-on asset prices, including cryptocurrencies, and could reverse the market downturn brought on by the trade war and current macroeconomic pressures.
Related: Fed’s Powell reasserts support for stablecoin legislation
Trump’s feud with the Federal Reserve chairman
Trump criticized Powell for not cutting interest rates and called for his termination again in an April 17 Truth Social post, which inflamed speculation that he would follow through on threats and find a way to remove the chairman.
Senator Rick Scott echoed Trump’s calls to remove Powell. “It’s time to clean house of everyone working at the Federal Reserve who isn’t on board with helping the American people and fighting for their best interests,” Scott wrote in an opinion piece published on Fox News.
The Trump administration has repeatedly stated that lowering interest rates is a top priority. Market analyst and investor Anthony Pompliano recently speculated that Trump deliberately crashed financial markets to force lower interest rates.
At the time, Pompliano cited a reduction in the yield of the 10-year US Treasury Bond to just 4%. The 10-year bond yield has climbed back up to 4.3% since then.
Magazine: Meebits and CryptoPunks are like Hot Wheels for adults: New MeebCo owner Sergito
Crypto investor sentiment took another significant hit this week after Mantra’s OM token collapsed by over 90% within hours on Sunday, April 13, triggering knee-jerk comparisons to previous black swan events such as the Terra-Luna collapse.
Elsewhere, Coinbase’s report for institutional investors added to concerns by highlighting that cryptocurrencies may be in a bear market until a recovery occurs in the third quarter of 2025.
Mantra OM token crash exposes “critical” liquidity issues in crypto
Mantra’s recent token collapse highlights an issue within the crypto industry of fluctuating weekend liquidity levels creating additional downside volatility, which may have exacerbated the token’s crash.
The Mantra (OM) token’s price collapsed by over 90% on Sunday, April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations among disillusioned investors, Cointelegraph reported.
While blockchain analysts are still piecing together the reasons behind the OM collapse, the event highlights some crucial issues for the crypto industry, according to Gracy Chen, CEO of the cryptocurrency exchange Bitget.
“The OM token crash exposed several critical issues that we are seeing not just in OM, but also as an industry,” Chen said during Cointelegraph’s Chainreaction daily X show, adding:
“When it’s a token that’s too concentrated, the wealth concentration and the very opaque governance, together with sudden exchange inflows and outflows, […] combined with the forced liquidation during very low liquidity hours in our industry, created the big drop off.”
Crypto in a bear market, rebound likely in Q3 — Coinbase
A monthly market review by publicly traded US-based crypto exchange Coinbase shows that while the crypto market has contracted, it appears to be gearing up for a better quarter.
According to Coinbase’s April 15 monthly outlook for institutional investors, the altcoin market cap shrank by 41% from its December 2024 highs of $1.6 trillion to $950 billion by mid-April. BTC Tools data shows that this metric touched a low of $906.9 billion on April 9 and stood at $976.9 billion at the time of writing.
Venture capital funding to crypto projects has reportedly decreased by 50%–60% from 2021–22. In the report, Coinbase’s global head of research, David Duong, highlighted that a new crypto winter may be upon us.
“Several converging signals may be pointing to the start of a new ‘crypto winter’ as some extreme negative sentiment has set in due to the onset of global tariffs and the potential for further escalations,” he said.
Manta founder details attempted Zoom hack by Lazarus that used very real “legit faces”
Manta Network co-founder Kenny Li said he was targeted by a sophisticated phishing attack on Zoom that used live recordings of familiar people in an attempt to lure him to download malware.
The meeting seemed real with the impersonated person’s camera on, but the lack of sound and a suspicious prompt to download a script raised red flags, Li said in an April 17 X post.
“I could see their legit faces. Everything looked very real. But I couldn’t hear them. It said my Zoom needs an update. But it asked me to download a script file. I immediately left.”
Li then asked the impersonator to verify themselves over a Telegram call, however, they didn’t comply and proceeded to erase all messages and block him soon after.
Li said the North Korean state-backed Lazarus Group was behind the attack.
The Manta Network co-founder managed to screenshot his conversation with the attacker before the messages were deleted, during which Li initially suggested moving the call over to Google Meet.
Speaking with Cointelegraph, Li said he believed the live shots used in the video call were taken from past recordings of real team members.
“It didn’t seem AI-generated. The quality looked like what a typical webcam quality looks like.”
AI tokens, memecoins dominate crypto narratives in Q1 2025: CoinGecko
The cryptocurrency market is still recycling old narratives, with few new trends yet to emerge and replace the leading themes in the first quarter of 2025.
Artificial intelligence tokens and memecoins were the dominant crypto narratives in the first quarter of 2025, accounting for 62.8% of investor interest, according to a quarterly research report by CoinGecko. AI tokens captured 35.7% of global investor interest, overtaking the 27.1% share of memecoins, which remained in second place.
Out of the top 20 crypto narratives of the quarter, six were memecoin categories while five were AI-related.
“Seems like we have yet to see another new narrative emerge and we are still following past quarters’ trends,” said Bobby Ong, the co-founder and chief operating officer of CoinGecko, in an April 17 X post. “I guess we are all tired from the same old trends repeating themselves.”
Crypto lending down 43% from 2021 highs, DeFi borrowing surges 959%
The crypto lending market’s size remains significantly down from its $64 billion high, but decentralized finance (DeFi) borrowing has made a more than 900% recovery from bear market lows.
Crypto lending enables borrowers to use their crypto holdings as collateral to obtain crypto or fiat loans, while lenders can use their holdings to generate interest.
The crypto lending market was down over 43%, from its all-time high of $64.4 billion in 2021 to $36.5 billion at the end of the fourth quarter of 2024, according to a Galaxy Digital research report published on April 14.
“The decline can be attributed to the decimation of lenders on the supply side and funds, individuals, and corporate entities on the demand side,” according to Zack Pokorny, research associate at Galaxy Digital.
The decline in the crypto lending market started in 2022 when centralized finance (CeFi) lenders Genesis, Celsius Network, BlockFi and Voyager filed for bankruptcy within two years as crypto valuations fell.
Their collective downfall led to an estimated 78% collapse in the size of the lending market, with CeFi lending losing 82% of its open borrows, according to the report.
DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
Decentralized exchange (DEX) Raydium’s (RAY) token rose over 26% as the week’s biggest gainer, followed by the AB blockchain (AB) utility token, up over 19% on the weekly chart.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
Tokenized stocks are on track to exceed $1 trillion in market capitalization in the coming years as adoption accelerates, two industry executives said at the TokenizeThis conference in New York.
The total addressable market for tokenized stocks — a type of tokenized real-world asset (RWA) — is difficult to project but is “definitely a bigger trillion-dollar market,” Arnab Naskar, STOKR’s CEO, said during an April 16 panel at the event.
In 2025, demand for the instruments has “exploded” from institutions ranging from Web3 wallets to neobanks to traditional financial services firms, according to Anna Wroblewska, Dinari’s Chief Business Officer.
“We’ve had an enormous influx of demand from a much broader scope of potential partners than you might even imagine […] it’s actually been really interesting,” Wroblewska said.
Related: Tokenization can transform US markets if Trump clears the way
Small but growing market share
As of April 18, tokenized stocks comprise around $350 million in cumulative market capitalization, according to data from RWA.xyz.
This represents only a sliver of the total RWA market, which is worth upward of $18 billion, the data shows.
But this could change as tokenized stocks capture a growing share of the US equities market, Wroblewska said. The US stock market has an aggregate value of more than $50 trillion, according to Siblis Research.
There is a “huge appetite for US public equities… even individual investors globally want exposure to US capital markets. Tokenization makes it fast and cheap,” Wroblewska said.
She added that tokenized US Treasury Bills are already in high demand for similar reasons. They currently comprise nearly $6 billion in total market cap, RWA.xyz data shows.
Meanwhile, Coinbase is considering making tokenized shares of its stock available on Base, its Ethereum layer-2 network.
Collectively, tokenized RWAs represent a $30 trillion market opportunity globally, Colin Butler, Movement Labs’ global head of institutional capital, told Cointelegraph in an August interview.
“Tokenization will become a mirror of the market. If the user experience is better, faster, and cheaper, people will default to tokenized assets,” Wroblewska said.
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