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The government is claiming victory in clearing the backlog of asylum claims – but that has been described as “misleading” as thousands are still waiting for a final decision.

Prime Minister Rishi Sunak pledged in December 2022 that he would “abolish” the legacy backlog of asylum claims made before 28 June of that year, with the Home Office being given the target of the end of 2023.

On Monday, the department said the pledge had been “delivered”, having processed more than 112,000 asylum claims overall in 2023.

There were more than 92,000 asylum claims made before 28 June 2022 requiring a decision, but Labour has said the government’s claim that all of those cases have been cleared is “false”.

The Home Office said on Monday that all cases in the legacy backlog have been reviewed, but added that “4,500 complex cases have been highlighted that require additional checks or investigation for a final decision to be made”.

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In-depth look at the asylum seekers homelessness crisis

Such cases typically involve “asylum seekers presenting as children – where age verification is taking place; those with serious medical issues; or those with suspected past convictions, where checks may reveal criminality that would bar asylum”, the department added.

It is understood that the Home Office has processed about 25,200 newer asylum claims, on top of the 86,800 decisions in legacy cases, which means the provisional number of total decisions made overall in the year reaches 112,000.

As many decisions as possible were made in the legacy backlog, according to officials, and the outstanding cases are due to a refusal to compromise security.

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The prime minister is asked: ‘When will you stop the boats?’

They pointed to efforts to clear some of the newer cases as evidence of the department’s commitment to tackling the overall backlog.

The prime minister said in a statement that the department’s efforts are “saving the taxpayer millions of pounds in expensive hotel costs, reducing strain on public services and ensuring the most vulnerable receive the right support”.

However, the CEO of the Refugee Council, Enver Solomon, said it is “misleading for the government to claim that the legacy backlog has been cleared as there are thousands still waiting for a decision”.

“After mismanaging the asylum system for so many years the government was right to clear the backlog but was wrong to do it in a way that has failed to see the face behind the case and instead has treated people simply as statistics rather than with the care and compassion they deserve,” he added.

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Prime Minister Rishi Sunak holds a press conference in Downing Street, London, in response to the Supreme Court ruling that the Rwanda asylum policy is unlawful. The PM has vowed to do "whatever it takes" to stop small boat crossings after the Supreme Court ruled on his flagship policy of removing asylum seekers on expulsion flights to Kigali. Picture date: Wednesday November 15, 2023

Labour’s shadow immigration minister also accused the government of making “false” claims about clearing the asylum backlog.

Stephen Kinnock said: “The asylum backlog has rocketed to 165,000 under the Tories – eight times higher than when Labour left office – and no slicing or renaming the figures can disguise that fact.

“Meanwhile Rishi Sunak’s promise made a year ago to end asylum hotel use has been disastrously broken – with a 20% increase to 56,000, costing the British taxpayer more than £2bn a year.

“This is yet more evidence of an asylum system broken by the Conservatives.”

Stephen Kinnock
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Stephen Kinnock claims asylum system is ‘broken’

The government’s announcement comes after months of fears that the prime minister’s target would not be achieved.

In February last year, the Home Office said thousands of asylum seekers would be sent questionnaires which could be used to speed up a decision on their claims, and about 12,000 people from Afghanistan, Syria, Eritrea, Libya and Yemen, who had applied for asylum in the UK and were waiting for a decision, were understood to be eligible under the policy.

In June, the National Audit Office (NAO) said efforts to clear the backlog needed to significantly increase to clear the backlog and questioned whether the plans were sustainable.

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The spending watchdog also estimated £3.6bn was spent on asylum support in 2022-23, which amounted to almost double the previous year.

The Home Office said more caseworkers had been tasked with processing applications, which was “tripling productivity to ensure more illegal migrants are returned to their country of origin, quicker”.

But the department’s top civil servant, Sir Matthew Rycroft, revealed in a letter to MPs that just 1,182 migrants who had crossed the Channel had been returned to their home country since 2020, out of a total of more than 111,800 who arrived in that time period.

The majority of those returned were from Albania, with whom the UK has a returns agreement.

In an appearance before the Commons Liaison Committee in December, the prime minister was unable to say when the remaining overall backlog of asylum claims would be cleared, which continued to rise and stood at 91,076 as of the end of November, not including legacy cases.

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Starmer makes cost-of-living promise in Christmas message

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Starmer makes cost-of-living promise in Christmas message

The prime minister has acknowledged Britons’ cost-of-living struggles in his Christmas message – and vowed that helping with the issue is his “priority”.

Sir Keir Starmer also urged members of the public to “each do our bit” and “reach out” to friends, relatives and neighbours during the festive period.

His message comes at the end of a difficult year for his government, with economic growth stuttering and Chancellor Rachel Reeves facing criticism over tax rises in the budget.

In a message recorded inside 10 Downing Street, Sir Keir said: “I know many across Britain are still struggling with the cost of living. Helping with that is my priority.

“But at this time of the year, which celebrates love and abundance, loss or hardship can feel even more acute.

“So call around to a neighbour. Check in on a friend or a relative who you haven’t heard from for a while. Reach out. It can make a huge difference.

“That is what Christmas is about.”

Sir Keir Starmer delivers his Christmas message from inside Downing Street. Pic: Downing Street
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Sir Keir Starmer delivers his Christmas message from inside Downing Street. Pic: Downing Street

The prime minister thanked NHS workers along with members of the military and the emergency services who will be on duty on Christmas Day.

“Just as so many put their feet up, some truly special people will be pulling on their uniforms and heading out to work,” he said.

“Our NHS staff emergency services and the brave men and women of our armed forces, all playing their part, doing their bit to care for the nation and to keep us safe.

“Many volunteers will be out there as well. Serving food. Reaching out to help those lonely or in need.

“So on behalf of the whole country, I want to say a big thank you.

“As a nation, we should raise a glass to you this Christmas. But more than that, we should each do our bit as well.”

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Sir Keir Starmer turning on the Christmas tree lights in Downing Street.

Conservative leader Kemi Badenoch used her Christmas message to talk about “Christian values” and thanked “everyone who has supported me during my first year as leader of the opposition”.

“It’s been the biggest challenge of my life,” she said. “But it’s also been a wonderful year. I can’t wait to get back to work next year to create a better United Kingdom.”

Liberal Democrat leader Sir Ed Davey spoke about the Christmas tree in London’s Trafalgar Square – an annual gift from Norway to thank the UK for its support during the Second World War – in his message.

While saying the tree may “look a little underwhelming” on first glance, the Liberal Democrat leader said it was a reminder of “friendship and loyalty”.

He added: “It makes me think about people standing together in tough times – whether against the Nazis in the 1940s, or right now in Ukraine.

“And yeah, it might not be perfect, but this tree in Trafalgar Square makes me think about families and friends looking out for one another right here at home.

“I can’t think of a better symbol of the Christmas spirit of generosity, love and hope. Of light in the darkness.”

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US crypto legislation and policies to watch out for in 2026

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US crypto legislation and policies to watch out for in 2026

Many crypto industry leaders and users anticipate significant changes in the US regulatory environment over the next 12 months, as various policy changes and legislation begin to take effect.

Although the inauguration of US President Donald Trump in January 2025 did not mean an immediate end to all digital asset regulation, many of the administration’s policies, from dismissing enforcement cases of crypto companies by the Securities and Exchange Commission to signing a stablecoin bill into law, signal apparent differences to previous US presidents and their chosen regulators.

“I expect an increasing number of jurisdictions to establish clear and transparent regulatory frameworks for the crypto industry, which should facilitate broader participation,” Ruslan Lienkha, YouHodler’s chief of markets, said in a statement shared with Cointelegraph. “Consequently, we are likely to see a significant rise in the involvement of banks and other financial institutions in the market in 2026.”

Digital asset market structure

As of late December, the US Senate has yet to vote on legislation to establish clear regulatory guidelines for digital assets. 

The initial bill, known as the Digital Asset Market Clarity Act (CLARITY), was passed by the House of Representatives in July. However, lawmakers in the Senate said their versions of the legislation would “build on” the existing bill rather than passing it through the chamber without any changes.

As a result, leadership on the Senate Banking Committee released a Republican-led discussion draft of the bill in July, and the Senate Agriculture Committee announced a bipartisan draft in November. Both bills will need to go through the respective committees before the full chamber can vote on either, or some combination thereof. 

The drafts suggested that Congress could grant the Commodity Futures Trading Commission more authority to regulate digital assets. The Securities and Exchange Commission has taken on a more prominent role in overseeing cryptocurrencies, with some notable exceptions. 

According to digital asset management company Grayscale, the bill will “facilitate deeper integration between public blockchains and traditional finance, facilitate regulated trading of digital asset securities, and potentially allow for onchain issuance by both startups and mature firms.”

Related: Republicans urge action on market structure bill over debanking claims

Both agencies have filed enforcement actions and issued rulemaking affecting the industry, but the SEC oversees exchange-traded funds tied to digital assets. The CFTC regulates Bitcoin (BTC) and Ether (ETH) as commodities in digital form.

Implementation of the GENIUS stablecoin act

One of the other pieces of legislation to emerge from a Republican-led US Congress in 2025 was the GENIUS Act, which aimed to establish a regulatory framework for payment stablecoins. Although Trump signed the bill into law in July 2025, it will take effect either 18 months after enactment or 120 days after regulators approve regulations related to implementation, putting the timeline in 2026 or later.

As part of the implementation process, the US Treasury Department opened two rounds of comments for proposed rules related to the GENIUS Act in August and September. The notice of proposed rulemaking could be made public in the first half of 2026, according to some experts.

“As regulatory clarity solidifies, particularly through laws like the GENIUS Act that establish federal stablecoin oversight, banks are increasingly exploring onchain tooling that could transform payments, settlements and liquidity provisioning,” Gracy Chen, CEO of Bitget, said in a statement shared with Cointelegraph. “Should major US banks begin issuing compliant stablecoins or tokenized deposits, we could see significant expansion of global liquidity, faster transaction settlement times, and richer DeFi composability built on regulated infrastructure.”

In addition to the Treasury, other US banking regulators have put forward proposals for stablecoin rules. On Dec. 16, the Federal Deposit Insurance Corporation (FDIC) proposed that subsidiaries of supervised banks could issue payment stablecoins under the criteria passed under GENIUS.

CFTC leadership yet to be named by Trump

In 2025, four out of the five commissioners serving as the CFTC’s leadership stepped down, leaving only Republican Caroline Pham to serve as the acting chair and the agency’s sole commissioner as of December. 

Although Trump initially nominated former CFTC Commissioner Brian Quintenz to replace Pham as a Senate-confirmed chair of the agency, the White House pulled him from consideration in September, reportedly in response to pushback from Gemini co-founders Tyler and Cameron Winklevoss, who are both Trump donors and prominent figures in the crypto industry. 

The withdrawal of Quintenz paved the way for Trump to nominate SEC official Michael Selig as CFTC chair. Selig’s nomination advanced out of the Senate Agriculture Committee in November, and in the full chamber later confirmed him as chair in a 53 to 43 vote as part of a package of nominees.

As of December, Trump has not publicly announced any potential replacements for the four remaining CFTC commissioner seats, despite many of them being vacant for months.

State-level crypto reserves

In June, Texas Governor Gregg Abbot signed a bill into law creating a state-managed fund that could hold Bitcoin (BTC), making the state the first to establish a crypto reserve. State officials announced in November that the fund held $5 million worth of shares in BlackRock’s spot Bitcoin ETF with plans to invest an additional $5 million directly in BTC, a move that could come in 2026.