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A wave of Labour frontbenchers including senior MP Jess Phillips have resigned in order to back an SNP motion calling for a ceasefire in Gaza.

Afzal Khan, Yasmin Qureshi, Paula Barker and Naz Shah are among the eight shadow junior ministers that quit in order to defy party orders to abstain from the vote.

Politics Live: Reaction as Starmer hit by resignations

Rachel Hopkins, Sarah Owen and Andy Slaughter have also left their frontbench roles after breaking the party whip to back the amendment.

The MPs say Sir Keir Starmer’s calls for humanitarian pauses in the Israel-Hamas war don’t go far enough.

Two parliamentary private secretaries, Dan Carden and Mary Foy, have also left the frontbench, with 56 Labour MPs rebelling in total to back the SNP amendment.

In a statement following the vote, Sir Keir said he regretted that party colleagues had not backed his position.

More on Israel-hamas War

But he added: “I wanted to be clear about where I stood, and where I will stand. Leadership is about doing the right thing. That is the least the public deserves. And the least that leadership demands.”

The Labour Party has been divided over its approach to the Middle East conflict, with numerous MPs and some members of the shadow frontbench calling for a ceasefire – something Sir Keir Starmer does not currently support.

The Labour leader has backed the UK Government’s position of pushing for humanitarian pauses in the fighting to allow aid to reach Palestinians trapped in the bombarded territory, but stopping short of calling for a total cessation of hostilities – saying that would “embolden” Hamas.

The resignations tonight mean that nine shadow ministers have quit over Labour’s position in total, after Imran Hussain stepped down last week.

Sky News’s political correspondent Tamara Cohen described the resignations as possibly the “biggest challenge to Starmer’s authority” yet.

The resignations were expected after the SNP tabled an amendment to the King’s Speech backing a ceasefire.

Labour told MPs to abstain from voting and put forward its own motion setting outs its position for longer humanitarian pauses.

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Labour rebellion tonight is ‘biggest challenge to Starmer’s authority yet’

By tradition, those occupying frontbench positions are bound by a collective responsibility that they support the party’s official line – although so far Sir Keir has allowed some to deviate by expressing support for a ceasefire in Gaza.

However Labour frontbenchers who rebel to back a rival amendment would normally face the sack – or be expected to resign – for breaking the party whip.

Ms Phillips, the most high profile MP to step down, said it was with a “heavy heart” that she quit.

In a resignation letter, the Birmingham Yardley MP and former shadow minister for domestic abuse wrote: “This week has been one of the toughest weeks in politics since I entered Parliament.

“I have tried to do everything that I could to make it so that this was not the outcome, but it is with a heavy heart that I will be leaving my post in the Shadow Home Office team.

“On this occasion I must vote with my constituents, my head, and my heart which has felt as if it were breaking over the last four weeks with the horror of the situation in Israel and Palestine.

“I can see no route where the current military action does anything but put at risk the hope of peace and security for anyone in the region now and in the future.”

Meanwhile Ms Shah said her email inbox is full of messages from constituents who agree with her position.

She told the Politics Hub with Sophy Ridge: “We have to make our positions clear… our job in Parliament is to use our platforms to convince people, which is what I did in the chamber earlier.

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“I’m not alone in calling for a ceasefire… my inbox has thousands of emails about a ceasefire. This is an issue that the British public feel strongly about.

“At some point there will be a ceasefire. Had we called for a ceasefire yesterday, 144 children might still be alive. A child dies every 10 minutes.”

Some Labour MPs expressed their support for a ceasefire but said they abstained from the SNP motion, calling it “divisive”.

However the SNP said the motion would allow MPs to vote with their conscience on the war, which broke out following the surprise Hamas attack on Israel on October 7 that saw at least 1,400 people slaughtered.

Since then over 11,000 people have been killed in retaliatory attacks on Gaza, according to the Hamas-run health ministry.

SNP Westminster leader Stephen Flynn said: “It’s shameful that a majority of Tory and Labour MPs blocked calls for a ceasefire – and have condoned the continued bombardment of Gaza, which has killed thousands of children and civilians, in breach of international law.

“It is clear that support for a ceasefire would have been even stronger tonight if Keir Starmer had not threatened Labour MPs with punishments if they voted for peace.”

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

A growing rift has emerged in Washington, D.C., between the cryptocurrency industry and labor unions as lawmakers debate whether to ease rules allowing cryptocurrencies in 401(k) retirement accounts.

The dispute centers on proposed market structure legislation that would allow retirement accounts to gain exposure to crypto, a move labor groups say could expose workers to speculative risk. In a letter sent on Wednesday to the US Senate Banking Committee, the American Federation of Teachers argued that cryptocurrencies are too volatile for pension and retirement savings, warning that workers could face significant losses.

The letter drew immediate pushback from crypto investors and industry figures. “The American Federation of Teachers has somehow developed the most logically incoherent, least educated take one could possibly author on the matter of crypto market structure regulation,” a crypto investor said on X. 

Retirement, Pensions
The AFT letter to Congress opposes regulatory changes that would allow 401(k) retirement accounts to hold alternative assets, including cryptocurrency. Source: CNBC

In response to the letter, Castle Island Ventures partner Sean Judge said the bill would improve oversight and reduce systemic risk, while enabling pension funds to access an asset class that has delivered strong long-term returns.

Consensys attorney Bill Hughes said the AFT’s opposition to the crypto market structure bill was politically motivated, accusing the group of acting as an extension of Democratic lawmakers.

Retirement, Pensions
Funds held in US retirement accounts by type of account plan. Source: ICI

Related: Atkins says SEC has ‘enough authority’ to drive crypto rules forward in 2026

Opposition to crypto in retirement and pension funds mounts

Proponents of allowing crypto in retirement portfolios, on the other hand, argue that it democratizes finance, while trade unions have voiced strong opposition to relaxing current regulations, claiming that crypto is too risky for traditional retirement plans.

“Unregulated, risky currencies and investments are not where we should put pensions and retirement savings. The wild, wild west is not what we need, whether it’s crypto, AI, or social media,” AFT president Randi Weingarten said on Thursday. 

The AFT represents 1.8 million teachers and educational professionals in the US and is one of the largest teachers’ unions in the country.

According to Better Markets, a nonprofit and nonpartisan advocacy organization, cryptocurrencies are too volatile for traditional retirement portfolios, and their high volatility can create time-horizon mismatches for pension investors seeking a predictable, low-volatility retirement plan.

Retirement, Pensions
Bitcoin and Ether volatility compared to other asset classes and stock indexes. Source: US Federal Reserve

In October, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) also wrote to Congress opposing provisions within the crypto market structure regulatory bill.

The AFL-CIO, the largest federation of trade unions in the US, wrote that cryptocurrencies are volatile and pose a systemic risk to pension funds and the broader financial system.

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