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Hunter Biden’s plea agreement, which fell apart under scrutiny by a federal judge on Wednesday, was the product of extensive negotiations between his lawyers and David Weiss, the U.S. attorney for Delaware. Yet the two sides evidently did not anticipate that U.S. District Court Judge Maryellen Noreika would object to provisions that she called “not standard,” “not what I normally see,” and possibly “unconstitutional.” In particular, Noreika zeroed in on two highly unusual aspects of the agreement that seemed designed to shield Biden from the possibility that his father will lose reelection next year.

The original plan, which was announced last month and is now up in the air, consisted of two parts: a plea agreementand a diversion agreement. Under the former, Biden agreed that he would plead guilty to two misdemeanors involving his willful failure to pay income taxes, and prosecutors agreed to recommend a sentence of probation. Under the latter, the Justice Department agreed not to prosecute him for an illegal gun purchase if he successfully completed a two-year pretrial diversion program.

Among other things, the diversion agreement would have required Biden to avoid drugs, stay out of legal trouble, “continue or actively seek employment,” and permanently relinquish his Second Amendment rights. On that last point, the agreement says Biden will not “purchase, possess, or attempt to purchase or possess, or otherwise come into possession of, a firearm…during the Diversion Period or any time thereafter.” It also says Biden consents to “a permanent entry in the National Instant Criminal Background Check System,” meaning he would be blocked if he tried to buy a gun from a federally licensed dealer.

Pretrial diversion is generally reserved for nonviolent offenders. In deciding which defendants qualify, the Justice Department says, a U.S. attorney “may formally or informally prioritize young offenders, those with substance abuse or mental health challenges, veterans, and others.” While Biden’s acknowledged drug problem fits within that description, it was also the reason he was charged with illegally buying a gun in the first place.

Under18 USC 922(g)(3), it is a felony for an “unlawful user” of a controlled substance to “receive” or “possess” a firearm. Biden, by his own admission, was a crack cocaine user when he bought a Colt Cobra .38 Special from StarQuest Shooters, a Wilmington gun store, in 2018. That crime was punishable by up to 10 years in prison when Biden committed it, and legislation that his father signed last year raised the maximum to 15 years. But under federal sentencing guidelines, the recommended penalty for a defendant like Biden, who has no prior criminal record, would be something like 10 to 16 months.

By participating in a diversion system that favors people with drug problems, Biden could avoid any such penalty. Yet but for his drug habit, there would have been no penalty to avoid: His crack use was the justification for charging him with a felony, and it also appears to be the main justification for sparing him prosecution on that charge. That paradox just scratches the surface of the unjust, illogical, and unconstitutional mess created by arbitrary federal restrictions on gun ownership.

During Wednesday’s hearing, Judge Noreika did not pause to reflect on the senselessness of Biden’s situation vis–vis the gun charge. Instead, she focused on two puzzling provisions of the diversion agreement.

“If the United States believes that a knowing material breach of this Agreement
has occurred,” the document says, “it may seek a determination by the United States District Judge for the District of Delaware with responsibility for the supervision of this Agreement.” The Justice Department would ask that judgei.e., Noreikato determine, based on a “preponderance of the evidence,” whether Biden had in fact violated the agreement, and Biden would “have the right to present evidence to rebut any such claim.” If Noreika agreed with the Justice Department, prosecutors could decide to pursue the gun charge.

“Typically, the Justice Department could independently verify any breach and bring charges,”The New York Times noted. “But Mr. Biden’s team, concerned that the department might abuse that authority if [Donald] Trump is re-elected, successfully pushed to give that power to Judge Noreika, arguing that she would be a more neutral arbiter.” Noreika thought that provision raised separation-of-powers issues by requiring her to perform a prosecutorial function.

Noreika also questioned language in the diversion agreement that shields Biden from future prosecution for certain crimes. The document says “the United States agrees not to criminally prosecute Biden, outside of the terms of this Agreement, for any federal crimes encompassed” by the statements of facts regarding his tax offenses and his illegal gun purchase.

Noreika thought it was odd to include such a promise in the diversion agreement, which according to both sets of lawyers did not require her approval, rather than the plea agreement, which does. “The judge said she couldn’t find another example of a diversion agreement so broad that it shielded the defendant from charges in a different case,”Politico reports. “Leo Wise, a prosecutor working for Weiss, told the judge he also was unaware of any such precedent.” Noreika objected to the apparent expectation that she would “rubber stamp” that seemingly novel arrangement.

It also became clear that the Justice Department and Biden’s lawyers disagreed about the scope of his immunity. “Wise said the agreement meant they wouldn’t charge Biden with more serious crimes related to his 2017 and 2018 taxes,” according to Politico, “and they wouldn’t charge him for crimes related to the gun mentioned in the diversion agreement.” But Wise said the federal investigation of Biden was ongoing. And when Noreika alluded to allegations that Biden had violated the Foreign Agents Registration Act through activities mentioned in the statement of facts regarding his tax crimeswhich refers to income he received as a board member of the Ukrainian energy company Burisma, for exampleWise said the agreement would not preclude prosecution under that statute.

Christopher Clark, Biden’s lawyer, rejected that interpretation. “Then there’s no deal,” Wise replied. Clark concurred: “As far as I’m concerned, the plea agreement is null and void.”

That dramatic breakdown was followed by a recess during which the defense and the prosecution settled on the interpretation favored by the government. “Clark said Biden’s team now agreed with the prosecutors that the scope of the agreement was charges on the gun, tax issues, and drug use,”Politico reports. But that reconciliation did not allay Noreika’s concerns about an overreaching diversion agreement.

The supposedly unreviewable promise regarding future prosecution, like the provision charging Noreika with deciding whether Biden had violated the diversion program’s requirements, was aimed at insulating him from politically driven decisions by the Justice Department under a Republican administration. As the Times notes, the provision provides “some protection against the possibility that Mr. Trump, if re-elected, or another Republican president might seek to reopen the case.”

Republicans, of course, complain that Biden received a “sweetheart deal” that would have allowed him to avoid prison and might also have protected him from prosecution for trading on his father’s influence. “The Justice Department could have readily proved serious tax felonies (involving more than $10 million in income) and a gun offense carrying a potential 10-year sentence,” National Review Contributing Editor Andrew C. McCarthy, a former federal prosecutor, writesin theNew York Post. “Both Hunter Biden and the Biden Justice Department wanted an arrangement that would giveHunter the maximum amount of immunity from prosecution for the minimum amount of criminal admissions they thought they could get away with.”

Just as it is hard to imagine that Biden could have earned a fortune for msterious services if his father had not been vice president, it is hard to imagine that his lenient treatment as a federal defendant had nothing to do with his father’s position as president. At the same time, Democrats are understandably concerned that a Republican administration’s pursuit of Biden might be motivated by considerations other than justice. Both sides assume that the Justice Department’s prosecutorial decisions are influenced by partisan politics, but they want us to believe that problem is peculiar to the other side.

In this context, judges like Noreika play a crucial role. They are under no obligation to approve sweetheart deals, and they can dismiss charges that are not adequately supported by the alleged facts. They also have broad discretion, within statutory limits, to impose penalties they think are commensurate with the offense. Those checks are no guarantee of justice, especially in cases involving conduct (such as Biden’s gun purchase) that should not be treated as a crime at all. But in a system where largely unaccountable prosecutors wield vast power to crush defendants or let them off with a slap on the wrist, any countervailing authority is welcome.

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UK

Starmer suspends four Labour MPs for breaches of party discipline

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Starmer suspends four Labour MPs for breaches of party discipline

Sir Keir Starmer has suspended four MPs for repeated breaches of party discipline.

Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell have lost the whip, meaning they are no longer part of Labour’s parliamentary party and will sit as independent MPs.

The suspension is indefinite pending a review.

Three other MPs have had their trade envoy roles removed: Rosena Allin Khan, Bell Ribeiro-Addy and Mohammed Yasin.

Politics latest: Suspended MPs defend their voting record

All seven had voted against the government’s welfare reforms earlier this month. However, it is understood this is not the only reason behind the decision, with sources citing “repeated breaches of party discipline”.

More than 100 MPs had initially rebelled against the plan to cut personal independent payments (PIP). Ultimately, 47 voted against the bill’s third reading, after it was watered down significantly in the face of defeat.

Ms Maskell was one of the lead rebels in the welfare revolt, and has more recently called for a wealth tax to fund the U-turn.

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‘There are lines I will not cross’

The York Central MP has spoken out against the government on a number of other occasions since the election, including on winter fuel and cuts to overseas aid.

Confirming the suspension, Ms Maskell told Sky News that she “doesn’t see herself as a rebel” but “somebody that is prepared to fulfil (her) role here of holding the executive to account and speaking truth to power”.

She stopped short of criticising the decision, saying: “I hold my hand out to the prime minister and hope he takes that and wants to reach back because I think it’s really important that we work together.”

Prime Minister Sir Keir Starmer. File pic: PA
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File pic: PA

Ms Maskell was first elected in 2015, while the other suspended MPs were newly elected last year.

Mr Hinchliff, the MP for North East Hertfordshire, has proposed a series of amendments to the flagship planning and infrastructure bill criticising the government’s approach.

Mr Duncan-Jordan, the MP for Poole, led a rebellion against the cut to the winter fuel payments while Alloa and Grangemouth MP Mr Leishman has been critical of the government’s position on Gaza.

Suspended Labour MPs clearly hit a nerve with Starmer


Tamara Cohen

Tamara Cohen

Political correspondent

@tamcohen

After a tricky few weeks for the government, in which backbenchers overturned plans to cut back welfare spending, now a heavy hand to get the party into line.

All four suspended MPs appear to be surprised – and upset.

Three more have lost plum roles as trade envoys – all on the left of the party.

All were active in the rebellion against the government’s welfare reforms, and voted against the changes even after a series of U-turns – but were among 47 Labour MPs who did so.

When MPs were told after the welfare vote that Number 10 was “fully committed to engaging with parliamentarians”, this was not what they were expecting.

We’re told the reasons for these particular suspensions go wider – over “persistent breaches of party discipline” – although most are not high profile.

In the scheme of things, Jeremy Corbyn and John McDonnell rebelled against the Labour whip hundreds of times under New Labour, without being suspended.

But these MPs’ pointed criticism of the Starmer strategy has clearly hit a nerve.

Read Tamara’s analysis in full here

‘Couldn’t support making people poorer’

Mr Duncan-Jordan told Sky News that he understood speaking out against benefit cuts would “come at a cost” but said he “couldn’t support making disabled people poorer”.

Mr Leishman echoed that sentiment, saying: “I firmly believe that it is not my duty as an MP to make people poorer, especially those that have suffered because of austerity and its dire consequences.”

Both said they remain committed to the Labour Party and its values, suggesting they have no plans to join the new party being set up by former Labour leader Jeremy Corbyn and ousted MP Zarah Sultana.

Similarly Mr Hinchliff said in a brief statement: “I remain proud to have been elected as a Labour MP and I hope in time to return to the Labour benches.”

The suspensions will be seen as an attempt to restore discipline ahead of the summer recess following a number of rebellions that has forced the government into U-turns.

Read more:
Who are the suspended Labour MPs?

As well as watering down the welfare bill, some cuts to the winter fuel payment have been reversed, leaving Chancellor Rachel Reeves with a fiscal blackhole to fill.

However the move risks creating further divisions with a number of Labour MPs criticising the decision.

Starmer ‘rolling out the carpet to Reform’

Ian Byrne, Labour MP for Liverpool West Derby, said he was “appalled” by the suspensions as he and 44 others voted against welfare cuts.

He said this isn’t the first time the Starmer leadership has “punished MPs for standing up for what’s right”, as he and six others were suspended last year for voting against the two-child benefit cap.

“These decisions don’t show strength. They are damaging Labour’s support and risk rolling out the red carpet for Reform,” he added.

Richard Burgon, who was also temporarily suspended in the two-child benefit cap revolt, said he had hoped the leadership would take a different approach to backbenchers.

“Sadly, it isn’t yet doing so. To help stop a Reform government, it really must do so,” he said.

Jon Trickett, Labour MP for Normanton and Hemsworth, said “it’s not a sin to stand up for the poor and disabled”, adding: “Solidarity with the suspended four.”

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Technology

Coinbase steps into consumer market with stablecoin-powered ‘everything app’ that goes beyond trading

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Coinbase steps into consumer market with stablecoin-powered 'everything app' that goes beyond trading

Dominika Zarzycka | Nurphoto | Getty Images

Coinbase unveiled Wednesday an “everything app” designed to bring more people into the crypto economy.

The “Base App,” which replaces Coinbase Wallet, will combine wallet, trading and payment functions as well as social media, messaging and support for mini apps – all running on the company’s homegrown public blockchain network Base, which is built on Ethereum.

So-called super apps like WeChat and Alipay – which bundle several different services and functionalities into a single mobile app – have long been viewed as the holy grail of fintech by the industry. They’re central to everyday life in China but haven’t been successfully replicated in the West. Meta Platforms and X have made attempts to realize that vision, integrating payments, messaging and social content, among other things.

For Coinbase, the intent is to expand its reach to a new subset of consumers who aren’t necessarily interested in buying or trading crypto, the company’s core business. Over-reliance on that revenue stream has been a sticking point for the company, and some analysts view the Base blockchain as a way for it to drive utility in crypto beyond speculative trading.

As part of the Base App launch, Coinbase also rolled out two key functions meant to help power it: an identity verification system called Base Account and an express checkout system for payments with the Circle-issued USDC stablecoin, called Base Pay.

Base Pay is a one-click checkout feature for USDC payments across the web, developed with Shopify. At the end of the year, Coinbase plans to bring Base Pay to brick-and-mortar stores with tap-to-pay support. Alex Danco, product manager at Shopify, said at Coinbase’s unveiling event that the function has been turned on for tens of thousands of its merchants this week, and will roll out to every merchant by the end of the year. Shopify will also offer 1% cash back in the U.S. for users who pay with USDC on Base later this year, he said.

Until now, enthusiasm around the Base network has been confined to builders and developers keen to use the technology. In perhaps the highest profile example, JPMorgan said last month that it’s launching a so-called deposit token on the Base blockchain.

Base is often touted for its ability to settle a payment in less than a second for less than a cent, which its fans expect will help the network grow in a way other crypto-based payments efforts haven’t.

Now, Coinbase hopes to tap into an opportunity to settle payments on the Base network that go beyond trading and payments. With the introduction of the everything app, the company is emphasizing the opportunity for a new economic model for content creators in particular – one that might give them more direct and diverse monetization options for their content as well as more control over their identity and data.

Coinbase will fund creator rewards and waive USDC transaction fees within chats in the app as part of the effort to bring more users on chain. It is not expected to generate significant revenue right away.

The new consumer app comes as the crypto industry and Coinbase, in particular, embrace a boom in product launches and rollouts thanks to the pro-crypto policies of the Trump administration and more clearly defined crypto regulations expected from Congress — perhaps as soon as this week. Last month Coinbase launched its first credit card with American Express and Shopify rolled out USDC-powered payments through Coinbase and Stripe.

Coinbase CEO Brian Armstrong has said both have a “stretch goal” to make USDC the number 1 stablecoin in the world, a position currently held by Tether’s USDT, and that he aims to make Coinbase “the number one financial services app in the world” in the next five to 10 years.

Don’t miss these cryptocurrency insights from CNBC Pro:

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Environment

CA senate drops controversial contract-breaking provision of solar law

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CA senate drops controversial contract-breaking provision of solar law

The California Senate dropped a controversial provision of an upcoming solar law which would have broken long-standing solar contracts with California homeowners after significant public backlash over the state’s plans to do so.

For several months now, AB 942 has been working its way through the California legislature, with big changes to the way that California treats contracts for residential solar.

The state has long allowed for “net metering,” the concept that if you sell your excess solar power to the grid, it gives you a credit that you can use to draw from the grid when your solar isn’t producing.

Some 2 million homeowners in California signed contracts with 20-year terms when they purchased their solar systems, figuring that the solar panels would pay off their significant investment over the coming decades by allowing them to sell power to the grid that they generated from their rooftops.

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But this has long been a sticking point for the state’s regulated private utilities. They are in the business of selling power, so they tend to have little interest in buying it from the people they’re supposed to be selling it to.

As a result, utilities have consistently tried to get language watering down net metering contracts inserted into bills considered by the CA legislature, and the most recent one was a bit of a doozy.

The most recent plan was asked for by the CA Public Utilities Commission, in response to an executive order by Gov. Gavin Newsom, was authored by a former utility executive, and used some questionable justifications, claiming that solar customers were responsible for high utility bills by shifting costs from solar customers to non-solar customers. Other analyses show that rooftop solar helped save $1.5 billion for ratepayers.

The most controversial point of AB 942 was that it would break rooftop solar contracts early. At first, it was going to break all existing contracts, then was limited to only break contracts if a homeowner sells their home. The ability to transfer these contracts was key to the buying decision for many homeowners who installed solar, as the ability to generate your own power and lower your electricity bills adds to a home’s value.

This brought anger from several rooftop solar owners and organizations associated with the industry. 100 organizations signed onto an effort to stop blaming consumers who are doing their best to reduce emissions and instead focus on the real causes of higher electricity, which the groups said are associated with high utility spending and profits.

It also resulted in several protests outside CA assemblymembers’ offices, opposing the bill. And California representatives received a high volume of comments opposing the plan to break solar contracts.

But, as of Tuesday, the language which would break rooftop solar contracts has been removed by the CA Senate’s Energy Committee, chaired by Senator Josh Becker, who led the effort. Language which blamed consumers for utility rate-hikes was also removed from the bill, according to the Solar Rights Alliance.

The bill is still not law, it has only moved out of the Energy Committee. But bills that advance through committee in California do not usually meet a significant amount of debate when they come to a floor vote, due to the Democratic supermajority in the state. It seems likely that if this bill advances to a vote, it will pass.

Electrek’s Take

The bill is still not perfect for solar homeowners. It disallows anyone with a yearly electricity bill of under $300 from getting the “California Climate Credit,” which is a refund to state utility customers paid for by California’s carbon fee on polluting industry.

The justification is thin for removing this credit from homeowners who are doing even more for the climate by installing solar… but it turns out that limitation probably won’t affect many customers, because most solar customers will still pay a yearly grid connection tax of around $300/year, and most solar customers still have a small electricity bill anyway at the end of the year.

Now, the question of a grid connection fee is another point of possible contention. This has been referred to as a “tax on the sun” in some jurisdictions, and it does feel like an attempt to nickel-and-dime customers who are contributing to climate reductions and should not be penalized for doing so. However, there is at least some rationality in the concept that they should pay to use infrastructure (but then… isn’t that the point of taxes, to build infrastructure for people to use?).

In short, even if it’s not perfect for every solar homeowner, we can consider this a win, and an example of how, at least with functional governments (unlike the US’ one), the public can and should be able to stop bad laws, or bad portions of laws, with enough public effort.

Now, if only we could apply that to those ridiculous EV fees


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