Boris Johnson was left “bamboozled” by the science around COVID, according to the government’s then chief scientific adviser.
Extracts from Sir Patrick Vallance’s diaries were shown to the official inquiry into the handling of the pandemic on Monday, with several references to the prime minister’s difficulty in getting to grips with the data he was being shown.
One entry described a late afternoon meeting between the pair in May 2020 to discuss plans for schools, where the adviser wrote: “My god this is complicated and models will not provide the answer. PM is clearly bamboozled.”
Ten days later, Sir Patrick wrote that Mr Johnson “sways between optimism and pessimism” and he was “still confused on different types of tests (he holds it in his head for a session and then it goes).”
Another extract from June 2020 said: “Watching [the] PM get his head around stats is awful. He finds relative and absolute risk almost impossible to understand.”
And a further entry from same month said it was “a real struggle to get [Mr Johnson] to understand” graphs.
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Sir Patrick stood by his words when questioned by the inquiry’s legal team, pointing to how Mr Johnson dropped science as a subject aged 15.
“He did struggle with some of the concepts and we did need to repeat them often,” he added.
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But while the senior scientist said it was “hard work sometimes to try and make sure that he had understood what a particular graph or piece of data was saying”, Mr Johnson did not have a “unique inability to grasp some of these concepts”, adding that it was “not unusual amongst leaders in Western democracies”.
‘Risk’ of Eat Out To Help Out
Sir Patrick also revealed that the government’s scientific and medical advisers were not told about Rishi Sunak’s “Eat Out To Help Out” scheme until it was announced by the then chancellor, saying their advice about the increased risk of transmission would have been “very clear”.
Written evidence from Mr Sunak to the inquiry said: “I don’t recall any concerns about [the scheme] being expressed during ministerial discussions, including those attended by [Sir Patrick].”
But asked about the inconsistency with his own statement, Sir Patrick said: “Around that time lots of measures were being released and you will see repeated references in various minutes and notes and emails and indeed, I am sure, in my private notes, to our concern that people were piling on more and more things and this would come to drive R above one and I think that was discussed at cabinet as well.
“So I think it would have been very obvious to anyone that this was likely to cause, well, inevitably would cause an increase in transmission risk and I think that would have been known by ministers.”
He added: “I would be very surprised if any minister didn’t understand that these openings carried risk.”
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Rishi Sunak unveiled Eat Out To Help Out in July 2020 – but Sir Patrick Vallance says scientific and medical advisers weren’t told about it beforehand
The division did not appear to be limited to that one scheme, however, with Sir Patrick’s diaries showing how he thought scientific advisers were kept out of strategy meetings by both Number 10 and the Cabinet Office.
The adviser told the inquiry there were “periods when it was clear that the unwelcome advice we were giving was, as expected, not loved and that meant we had to work doubly hard that the science evidence and advice was being properly heard”.
He added: “There were times, because we were giving unpalatable evidence and advice, people would prefer not to hear it.”
Sir Patrick also said “pressure” was sometimes put on advisers to change advice, pointing to a WhatsApp exchange with the then health secretary Matt Hancock.
“[Mr Hancock] asked me to change something and I said no, we are not going to change our advice, because that is where the evidence bit comes in,” said the adviser. “You have got to at least see that even if you disagree with it and don’t want to do it.”
Image: Matt Hancock was health secretary during the pandemic
He added: “I am absolutely sure, because politicians are politicians, that there were attempts to manage us and make sure we were not always given the access we might need
“But I think overall we managed to get through all that… and make sure the advice and evidence was heard.”
Asked about the WhatsApp exchange, a spokesman for Mr Hancock said: “Mr Hancock has supported the inquiry throughout and will respond to all questions when he gives his evidence.”
The US Securities and Exchange Commission (SEC) sent warning letters to several exchange-traded fund (ETF) providers, halting applications for leveraged ETFs that offer more than 200% exposure to the underlying asset.
ETF issuers Direxion, ProShares, and Tidal received letters from the SEC citing legal provisions under the Investment Company Act of 1940.
The law caps exposure of investment funds at 200% of their value-at-risk, defined by a “reference portfolio” of unleveraged, underlying assets or benchmark indexes. The SEC said:
“The fund’s designated reference portfolio provides the unleveraged baseline against which to compare the fund’s leveraged portfolio for purposes of identifying the fund’s leverage risk under the rule.”
The SEC directed issuers to reduce the amount of leverage in accordance with the existing regulations before the applications would be considered, putting a damper on 3-5x crypto leveraged ETFs in the US.
SEC regulators posted the warning letters the same day they were sent to the issuer, in an “unusually speedy move” that signals officials are keen on communicating their concerns about leveraged products to the investing public, according to Bloomberg.
The crypto market took a nosedive in October after a flash crash caused $20 billion in leveraged liquidations, the most severe single-day liquidation event in crypto history, sparking discussions among analysts and investors over the dangers of leverage and its effect on the crypto market.
24-hour liquidations in the crypto derivatives market. Source: Coinglass
Liquidations in the crypto futures market during the last cycle averaged about $28 million in long positions and $15 million in shorts per day.
The current cycle is clocking about $68 million in long liquidations and $45 million in short liquidations daily, according to Glassnode.
Demand for leveraged crypto ETFs surged following the 2024 presidential election in the United States, in anticipation of a better regulatory climate for crypto in the US.
Leveraged ETFs are not subject to margin calls and automated liquidations like leveraged crypto derivatives, but can still deal a serious blow to investor capital in a bear market or even a sideways market, as losses compound more quickly than gains.
Taiwan could see its first stablecoin launched as early as the second half of 2026 as lawmakers advance new rules for digital assets, according to one of the country’s financial regulators.
According to a Focus Taiwan report on Wednesday, Financial Supervisory Commission (FSC) Chair Peng Jin-lon said that, based on the timeline for passing related legislation, a Taiwan-issued stablecoin could enter the market in the second half of 2026.
Should the Virtual Assets Service Act pass in the country’s next legislative session, and accounting for a six-month buffer period for the law to take effect, it would lay the groundwork for the launch of a Taiwanese stablecoin.
Peng said the draft legislation was derived from Europe’s Markets in Crypto-Assets (MiCA) and would eventually allow non-financial institutions to issue stablecoins. Initially, however, Taiwan’s central bank and the FSC would restrict issuance to regulated entities.
Last year, Taiwan’s policymakers began enforcing Anti-Money Laundering regulations in response to alleged violations by crypto companies MaiCoin and BitoPro. As of December, however, regulated entities in the country have yet to launch a stablecoin pegged to either the US dollar or the Taiwan dollar.
In addition to the FSC’s advancement of stablecoin regulations, Taiwan’s policymakers are reportedly assessing the total amount of Bitcoin (BTC) confiscated by authorities. The move signaled that the nation could be preparing to launch its own strategic crypto stockpile.
Ju-Chun, a Taiwanese lawmaker, called on the government to add BTC to its national reserves in May as a hedge against economic uncertainty.
The country’s reserves include US Treasury bonds and gold, but no cryptocurrencies. Other countries, such as the US, have adopted policies that promote Bitcoin and crypto reserves.
Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.
He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”
Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.
“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.
Gensler’s record and industry backlash
Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.
The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.
Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg
Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.
The politicization of crypto
Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.
“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”
He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.
On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”
He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.
Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.
Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.