Rishi Sunak’s baby steps on cabinet changes are a reminder he still struggles to take his party with him

Published

2 years ago

September 2, 2023

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Rishi Sunak today sought to put his own stamp on the cabinet, in a way not possible a year ago when he took over.

Yet this reshuffle – which was already in the works in May – took only baby steps towards creating a cabinet truly in Mr Sunak’s image.

Even this level of change immediately provoked rumblings which suggest some of the Conservative Party are not yet ready for a top team that bears his imprint too heavily.

Today has been a stark reminder that, 10 months into the job, sometimes Mr Sunak still struggles to take part of his party with him.

And as a result, he is now likely to have a second reshuffle before the end of the year.

The logic behind the three decisions today tells us much about Mr Sunak.

There is a perfectly sensible reason to replace Ben Wallace with Grant Shapps.

Mr Wallace had qualities that endeared him to many – his affinity with the military, his high standing with Tory members, his willingness to confront the Treasury and other ministers, and his pivotal role over Ukraine.

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But not all of these went down so well in Number 10, who felt this amounted to grandstanding on the world stage and endless demands for cash.

It was no secret in Westminster that the personal relationship between Mr Wallace and Mr Sunak was not the strongest.

So the Shapps appointment represents a different approach.

A fast learner – as any cabinet minister who has had five jobs in the last year can expect to be – he will use this more high-profile approach to project the government’s message more widely.

Senior Tories know they don’t have many top-rank media performers (“it’s a bit eighth series Big Brother”, sighed one) – so an upside of the defence post is that it comes without the burdens of the energy job – where the incumbent risks being dragged into tricksy arguments about climate change and net zero.

Mr Shapps is not known for getting bogged down in fights with cabinet colleagues or arguments with the Treasury.

In general, he is well-liked – and last year was sufficiently confident to launch his own, albeit brief, leadership bid.

Such is the grumpiness of the Tory Party that this closeness is toxic for some, with one member of the government labelling Grant Shapps “an encyclopaedia salesman” – he was a businessman before entering government – and claiming this was a reward for helping to oust Liz Truss.

Yet Mr Sunak will see this as putting the demands of an upcoming election ahead of the need for depth of military or foreign affairs experience – a trade-off he will be comfortable with.

Replacing Mr Shapps in the energy brief is Claire Coutinho, one of the most loyal MPs to Mr Sunak in parliament.

A special adviser when he was chief secretary to the Treasury, a parliamentary aide when he was chancellor, and a senior figure on his campaign team, this former investment banker speaks the prime minister’s language.

As a reward, she becomes the first 2019 intake MP to be catapulted into cabinet.

But she is a relatively unknown figure to many, and there will be an awful lot of Tory MPs who feel there are others (perhaps themselves) with greater qualifications.

She – along with Laura Trott, Victoria Atkins, Laura Farris and the highly tipped David Johnston, who was promoted to Ms Coutinho’s old job – form a new generation of loyalists for the new prime minister.

But many others, bruised by the Truss era, are hostile and suspicious of his decision to promote allies rather than reach across the party to find talent.

Back in May, there were suggestions this reshuffle might spell the end of Therese Coffey, the environment secretary, Steve Barclay, the health secretary, or even Suella Braverman, the home secretary.

What is not clear is whether things will be easier in November than they are now, the last days of August.

Politics

Strive to become Bitcoin treasury company

Published

2 hours ago

May 7, 2025

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Strive to become Bitcoin treasury company

Strive Asset Management, founded by entrepreneur and former presidential candidate Vivek Ramaswamy, has revealed plans to transition into a Bitcoin treasury company.

According to a May 7 announcement, Strive is going public through a reverse merger and plans to use the combined company’s stock to accumulate Bitcoin (BTC).

The deal will see Strive merging with Asset Entities — a social media marketing company listed on the Nasdaq. The combined entity will operate under the Strive brand and use its access to the public equity markets to finance Bitcoin purchases, the company said.

Once the deal closes, Strive plans to issue approximately $1 billion in equity and debt and use the proceeds to accumulate BTC. The asset manager “intends to use all available mechanisms to build a Bitcoin war chest […] and build a long-term investment approach designed to outperform Bitcoin,” it said.

Strive plans to allow “Bitcoin holders to contribute Bitcoin in exchange for public stock through a structure that is intended to be tax-free,” it said. As of May 7, the company manages approximately $2 billion in net assets across a variety of funds.

In December, Strive filed to list an exchange-traded fund (ETF) investing in convertible bonds issued by MicroStrategy and other corporate Bitcoin buyers.

Corporate Bitcoin treasuries

Corporate Bitcoin treasuries have become popular since the approval of Bitcoin exchange-traded funds (ETFs) on Wall Street. Companies pioneering the Bitcoin buyer approach, such as Strategy have seen their share prices surge by 350% in 2024.

Analysts say adding Bitcoin to corporate treasuries can “potentially be a valuable hedge against growing fiscal deficits, currency debasement, and geopolitical risks,” asset manager Fidelity Digital Assets said in a 2024 report.

Corporate Bitcoin treasuries collectively hold roughly $74 billion worth of BTC as of May 7, according to Bitcointreasuries.net.

Trump connection

Ramaswamy, an outspoken ally of President-elect Donald Trump, founded Strive in 2022. Its stated goal is to help investors “harness the power of capitalism,” according to Strive’s website.

In 2023, Ramaswamy — who largely earned his $1 billion net worth from biotechnology startup Roivant Sciences — campaigned against Trump in the Republican presidential primary. He later endorsed the president-elect.

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Politics

Trump memecoin dinner attendees could include foreign nationals — Report

Published

4 hours ago

May 7, 2025

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Trump memecoin dinner attendees could include foreign nationals — Report

At least some of the top holders of Donald Trump’s memecoin who apply to attend a private dinner with the president could be based outside the United States.

According to a May 7 Bloomberg report based on an analysis of the top TRUMP tokenholders, 19 of the top 25 wallets on the leaderboard used foreign exchanges that exclude US-based customers, suggesting either foreign nationals or Americans living abroad. In addition, more than half of the top 220 holders — the group eligible to apply for a dinner with the president — also used exchanges in other countries.

As of May 7, the identities of the top tokenholders and those who might choose to apply for the May 22 Trump dinner and “special VIP tour” were unknown. However, the project stated that anyone who applied could not bring guests, had to pass a background check, and “can not be from a [Know Your Customer] watchlist country.”

The implications of having dozens or hundreds of memecoin holders potentially tied to foreign governments and interest groups have raised ethics concerns from some US lawmakers, claiming that Trump was engaging in “pay-to-play” corruption. At least one senator has called for the president’s impeachment, saying Trump was “selling access for what are effectively payments directly to him.”

Memecoin concerns are slowing crypto legislation

Democratic lawmakers in the House of Representatives and Senate have already been pushing back against considering any crypto-related legislation until Republicans address concerns around “Trump’s crypto corruption.” The Senate is expected to vote on a bill regulating stablecoins on May 8, and House Republicans recently introduced a discussion draft of a digital asset market structure bill.

Then-president-elect Trump launched the memecoin on Jan. 17 — three days before taking office — followed by the first lady introducing her own token. Two companies connected to Trump control roughly 80% of the memecoin’s supply.

The launch of the memecoin and its potential influence over the president and his agenda has already prompted some companies to get on board. On April 30, a trucking logistics management company announced a $20 million investment in the TRUMP token, suggesting influencing Trump’s trade war between the US and Mexico, where the firm conducts much of its business.

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Trump-backed USD1 is now the seventh-largest stablecoin worldwide

Published

8 hours ago

May 7, 2025

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Trump-backed USD1 is now the seventh-largest stablecoin worldwide

USD1, the US dollar stablecoin launched by the President Donald Trump-backed World Liberty Financial (WLFI), has become the seventh-largest stablecoin worldwide in just two months since its launch.

WLFI’s snapshot vote for a USD1 airdrop proposal is underway, and USD1’s market capitalization has continued to climb.

Launched in early March with a $3.5 million supply, USD1 has expanded into a market cap of $2.2 billion at the time of writing, leaving rival stablecoins First Digital USD (FDUSD), PayPal USD (PYUSD) and Tether Gold (XAUT) behind, according to data from CoinGecko.

Although rising fast, the USD1 market cap is still far from the market value of major stablecoins like Tether’s USDt (USDT) and USDC (USDC), whose market caps are worth $149 billion and $61 billion, respectively.

BNB Chain drives USD1 issuance

Trump-backed USD1 is almost exclusively issued on Binance-backed BNB Chain. According to data from BscScan, as much as $2.1 billion of all USD1 supply is issued on BNB Chain, accounting for more than 99% of its total circulating supply, while an Ethereum-based version accounts for just $14.5 million, according to Etherscan.

USD1’s latest market spike was sharp, jumping 1,540% from $128 million to $2.1 billion within two days in late April, according to CoinGecko.

The spike came days before Eric Trump announced that Abu Dhabi-based investment firm MGX would use the USD1 to invest $2 billion in Binance.

Justin Sun-backed HTX among the first CEXs to list USD1

As USD1’s market cap spiked, some centralized exchanges (CEXs) rushed to list the Trump-backed stablecoin.

HTX, a crypto exchange closely associated with Tron founder Justin Sun and formerly known as Huobi, announced the listing of USD1 with permanent zero-fee withdrawals on the BEP-20 network on May 6.

According to websites like CoinGecko and CoinMarketCap, HTX was one of the first CEXs to list USD1, as the token is primarily available on decentralized exchanges, including PancakeSwap and Uniswap.

Most WLFI inflows come from outside the US

While the WLFI community has been voting on the USD1 airdrop, some reports suggested that WLFI investment is mainly coming from outside the United States.

According to a poll by V1PS founder Notaz.Sol, as much as 90% of WLFI investors are likely coming from non-US jurisdictions, including Europe, Asia and Latin America.

A May 7 Bloomberg report also indicated that over half of the top holders of Trump-branded memecoins reside abroad.

The USD1 stablecoin’s growth lines up with Trump’s pro-stablecoin agenda announced in his executive order on “Strengthening American leadership in digital financial technology” in January.

While WLFI has been closely associated with Binance, both Trump and Binance have repeatedly denied and criticized reports suggesting any links or deals between the parties.

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