Sir Keir Starmer put past government experience and an appetite for public service reform at the heart of his reshuffle.
The result was more wins for those on the right of the party, reflecting the “change” since the Corbyn years.
The Labour leader has made clear the reshuffle, the first full-blown reset of his top team since May 2021, put his “strongest possible players on the pitch” and represented a government in waiting “determined to solve the challenges we have”.
He left the top three jobs – shadow chancellor, home secretary and foreign secretary – untouched, but brought in a handful of fresh faces and showed his ruthlessness by demoting those suspected of briefing against him.
Hilary Benn, a former cabinet minister under Tony Blair and Gordon Brown and a big figure in Labour politics, returns to the frontline with the Northern Ireland role. He will steady the nerves of the party as his appointment represents the endorsement of Sir Keir by a serious figure not associated with the factionalism of his father, Tony Benn.
Liz Kendall, who was a special adviser in the last Labour government, gets the work and pensions brief – while Pat McFadden gets a big upgrade after being made campaign chief with a Cabinet Office portfolio. Both figures are identified with the Blair wing of the Labour Party, who were uncomfortable during the Corbyn years and can antagonise some on the left.
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Deputy leader Angela Rayner emerges “score-draw” with what some claim is a mid-level role – shadowing the Department for Levelling Up – but holds onto the work brief so unions will be relieved, and she gets Deputy PM moniker officially.
Allies of Sir Keir reject this suggestion, saying the levelling up brief encompasses some of Labour’s highest priorities on social justice, housing and planning – but everyone will be looking to Ms Rayner to publicly demonstrate her enthusiasm for the new role.
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Who is in and out of Starmer’s cabinet?
The biggest loser was one-time leadership contender Lisa Nandy, whose personal relationship with Sir Keir never recovered after the leadership race.
I’m told the conversation was tricky: initially the Labour leader just said he wanted her to do this role and bigged it up. Ms Nandy then said “it sounds like you don’t really want me” and he effectively admitted that. Swallowing her pride, however, subsequently she put out a statement saying she’s a team player and accepted the job – the number two in the Foreign Office, shadowing international development with the right to attend cabinet.
One figure called it a “factional takeover” by some on the right of the party – the balance of the top team certainly very different to the shadow cabinet he appointed when he took over in 2020.
Some will point to the influence of the backroom campaign chief Morgan McSweeney, who has a fractious relationship with the left of the party, though often Labour staff members can become bogeymen for elected politicians not wanted to blame the leader themselves.
But most of all, Sir Keir will be relieved it is over. In May 2021, his first big reshuffle went awry when a series of figures from Ms Rayner downwards refused to move and he had to back down.
Asked how it felt, the Labour leader told me: “I was really pleased that we started at nine o’clock this morning. We’d finished by half past 12. And everybody’s pleased with the position they’ve now got in the shadow cabinet. I’m very, very pleased with this reshuffle.”
The body language suggests he was indeed happy with the result.
Stablecoin issuer Circle has secured regulatory approval to operate as a financial service provider in the Abu Dhabi International Financial Center, deepening its push into the United Arab Emirates.
In an announcement Tuesday, Circle Internet Group said it received a Financial Services Permission license from the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM), the International Financial Centre of Abu Dhabi. This allows the stablecoin issuer to operate as a Money Services Provider in the IFC.
The USDC (USDC) issuer also appointed Saeeda Jaffar as its managing director for Circle Middle East and Africa. The new executive also serves as a senior vice president and group country manager for the Gulf Operation Council at Visa and will be tasked with developing the stablecoin issuer’s regional strategy and partnerships.
Circle co-founder, chairman and CEO Jeremy Allaire said that the relevant regulatory framework “sets a high bar for transparency, risk management, and consumer protection,” adding that those standards are needed if “trusted stablecoins” are going to support payments and finance at scale.
The newly introduced Federal Decree Law No. 6 of 2025 brings DeFi platforms, related services and infrastructure providers under the scope of regulations if they enable payments, exchange, lending, custody, or investment services, with licenses now required. Local crypto lawyer Irina Heaver said that “DeFi projects can no longer avoid regulation by claiming they are just code.”
Crypto companies seeking a US federal bank charter should be treated no differently than other financial institutions, says Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC).
Gould told a blockchain conference on Monday that some new charter applicants in the digital or fintech spaces could be seen as offering novel activities for a national trust bank, but noted “custody and safekeeping services have been happening electronically for decades.”
“There is simply no justification for considering digital assets differently,” he added. “Additionally, it is important that we do not confine banks, including current national trust banks, to the technologies or businesses of the past.”
The OCC regulates national banks and has previously seen crypto companies as a risk to the banking system. Only two crypto banks are OCC-licensed: Anchorage Digital, which has held a charter since 2021, and Erebor, which got a preliminary banking charter in October.
Crypto “should have” a way to supervision
Gould said that the banking system has the “capacity to evolve from the telegraph to the blockchain.”
He added that the OCC had received 14 applications to start a new bank so far this year, “including some from entities engaged in novel or digital asset activities,” which was nearly equal to the number of similar applications that the OCC received over the last four years.
Comptroller of the Currency Jonathan Gould giving remarks at the 2025 Blockchain Association Policy Summit. Source: YouTube
“Chartering helps ensure that the banking system continues to keep pace with the evolution of finance and supports our modern economy,” he added. “That is why entities that engage in activities involving digital assets and other novel technologies should have a pathway to become federally supervised banks.”
Gould brushes off banks’ concerns
Gould noted that banks and financial trade groups had raised concerns about crypto companies getting banking charters and the OCC’s ability to oversee them.
“Such concerns risk reversing innovations that would better serve bank customers and support local economies,” he said. “The OCC has also had years of experience supervising a crypto-native national trust bank.”
Gould said the regulator was “hearing from existing national banks, on a near daily basis, about their own initiatives for exciting and innovative products and services.”
“All of this reinforces my confidence in the OCC’s ability to effectively supervise new entrants as well as new activities of existing banks in a fair and even-handed manner,” he added.
The US Commodity Futures Trading Commission has issued updated guidance for tokenized collateral in derivatives markets, paving the way for a pilot program to test how cryptocurrencies can be used as collateral in derivatives markets.
Collateral in derivatives markets serves as a security deposit, acting as a guarantee to ensure that a trader can cover any potential losses.
The digital asset pilot, announced by CFTC acting chairman Caroline Pham on Monday, will allow futures commission merchants (FCM) — a company that facilitates futures trades for clients — to accept Bitcoin (BTC), Ether (ETH) and Circle’s stablecoin USDC (USDC) for margin collateral.
Pham said in a statement that the pilot program also “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
As part of the pilot, participating FCMs will be subject to strict reporting criteria, which require weekly reports on total customer holdings and any significant issues that may affect the use of crypto as collateral.
The CFTC’s Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk also issued updated guidance on the use of tokenized assets as collateral in the trading of futures and swaps.
The guidance covers tokenized real-world assets, including US Treasury’s money market funds, and topics such as eligible tokenized assets, legal enforceability, segregation and control arrangements.
Pham said in an X post on Monday that the “guidance provides regulatory clarity and opens the door for more digital assets to be added as collateral by exchanges and brokers, in addition to US Treasurys and money market funds.”
The Market Participants Division also issued a “no-action position” on specific requirements regarding the use of payment stablecoins as customer margin collateral and the holding of certain proprietary payment stablecoins in segregated customer accounts.
A CFTC Staff Advisory that restricted FCMs’ ability to accept crypto as customer collateral, Staff Advisory 20-34, was also withdrawn because it is “outdated and no longer relevant,” in part due to the GENIUS Act.
Crypto execs back CFTC move
Several crypto executives applauded the move by the CFTC.
Katherine Kirkpatrick Bos, the general counsel at blockchain company StarkWare, said the use of “tokenized collateral in the derivatives markets is MASSIVE.”
“Atomic settlement, transparency, automation, capital efficiency, savings. Feels abrupt but who recalls the tokenization summit in 2/24, a glimmer of hope in the darkness,” she said.
Coinbase chief legal officer Paul Grewal also supported the action, calling Staff Advisory 20-34 a “concrete ceiling on innovation.”
“It relied on outdated info, went well beyond the bounds of regulation and frustrated the goals of the PWG.”
Salman Banaei, the general counsel at layer-1 blockchain the Plume Network, said it was a “major move” by the CFTC, and another push toward wider adoption.
“This is a step toward the use of onchain infra to automate settlement for the biggest asset class in the world: OTC derivatives, swaps,” he added.