In the Blair and Brown years, the irrepressible Derek Draper was one of Westminster’s best known and most colourful characters.
Affectionately known as “Dolly”, he was a cheerful extrovert who loved being at the centre of intrigue and gossip and was prone to boasting about his own importance.
To be fair, he was indeed very much an insider in the New Labour project that catapulted Tony Blair into power in the landslide election victory in 1997.
He was sociable, gregarious and because he worked for and was an ally of Peter Mandelson he was almost a Blairite before Blair.
He was fun, had a cheeky grin and an easy manner, and enjoyed the company and camaraderie of MPs and journalists in Westminster.
He was also very good at his job, colleagues acknowledged, and passionate about Labour winning the 1997 election after 18 years in opposition.
But it was his occasional boasting – and his misfortune in being unwittingly dragged into plotting – that landed him in two embarrassing New Labour scandals.
More on Labour
Related Topics:
The first was when he was caught out bragging about how important and well connected he was. The second was over a link to a plot to smear Tory politicians.
Part of Dolly’s colourful reputation came from the fact that he worked for Mandelson, the “Prince of Darkness”, during Mandy’s ascent from spin doctor to government minister.
Advertisement
Image: Draper faced criticism over his infamous quote
That wasn’t Draper’s first job in politics, however.
In fact, he worked for Nick Brown, when “Newcastle Brown” – the Tyneside MP who later became chief whip under four Labour leaders – was a shadow minister.
He went to work for Mandelson when he became the MP for Hartlepool in 1992 and – along with the equally irrepressible Charlie Whelan, Gordon Brown‘s legendary spin doctor – was one of Westminster’s most high-profile insiders.
‘I am intimate with every one of them’
But Draper left Westminster a year before the Blair landslide and became a political lobbyist. And that was when his boasting landed him in trouble.
In 1998, in a scandal that became known as “Lobbygate”, he told an undercover reporter from The Observer how important and influential he was.
“There are 17 people who count in this government… to say I am intimate with every one of them is the understatement of the century,” he said in a memorable quote.
He drew criticism. Even Mandelson said at the time: “He gets above himself. But now he has been cut down to size and I think probably he will learn a very hard lesson from what has happened.”
But he landed in more trouble in 2009 when The Daily Telegraph revealed that Brown’s then spin doctor, Damian McBride, had sent him emails about a plot to smear Tory politicians including David Cameron, George Osborne and Nadine Dorries.
It was reported that Draper, who by now had set up the LabourList website, described the plan as “brilliant” in an email to McBride.
Now spin doctor for the shadow attorney general Emily Thornberry, McBride immediately quit and prime minister Brown was forced to issue a grovelling apology.
A few weeks later, a contrite Draper quit LabourList and said: “I regret ever receiving the infamous email and I regret my stupid, hasty reply. I should have said straight away that the idea was wrong.”
After his career change, training as a psychotherapist, Dolly moved on, although he would still turn up to social events with Labour Party pals, such as the Tribune magazine Christmas party.
His illness has been a terrible shock to all who knew this larger-than-life character who was such amusing and engaging company. Gone, but certainly not forgotten.
Aave Labs became one of the first major decentralized finance (DeFi) projects to secure authorization under Europe’s new Markets in Crypto-Assets (MiCA) regulation, allowing the company to offer regulated stablecoin ramps across the European Economic Area (EEA).
The approval enables “Push,” Aave Labs’ fiat-to-crypto service, to let users convert between euros and crypto assets, including the Aave protocol’s native stablecoin, GHO. The Central Bank of Ireland granted the authorization to Push Virtual Assets Ireland Limited, a wholly-owned subsidiary of Aave Labs.
The company selected Ireland for its European operations, signaling that the country is becoming a preferred hub for compliant onchain finance under MiCA. On June 25, the crypto exchange Kraken secured its MiCA authorization in Ireland, allowing it to expand its offerings across Europe.
The move came as global stablecoin supply surpassed $300 billion in 2025, signaling strong demand for fiat-pegged crypto assets. At the time of writing, CoinGecko data showed that the total stablecoin market cap across the crypto sector was at $312 billion.
Top stablecoins by market capitalization. Source: CoinGecko
Aave’s Push opens regulated access to GHO and other stablecoins
With its MiCA approval secured, Push will offer regulated on and off-ramps to GHO and other stablecoins integrated in Aave’s product suite.
According to Aave’s announcement, the conversion fees are set to zero, which is a competitive rate compared to the typical fee structure across legacy fintech providers and centralized exchanges (CEXs).
While the protocol introduced the product as a “zero-fee” solution, it did not specify whether this fee structure was permanent or tied to an introductory period.
Aave Labs said a compliant payment infrastructure is foundational to developers hoping to onboard mainstream users into DeFi.
By providing a predictable, audited pathway between euros and crypto assets, Push could reduce one of the biggest frictions in DeFi adoption: the dependence on CEXs for fiat-to-crypto conversions.
The ability for a DeFi-native organization to run a compliant fiat bridge represents a meaningful shift as the protocol supports tens of billions in stablecoin liquidity.
According to DefiLlama, Aave processed a volume of $542 million in the last 24 hours alone. The data aggregator also showed that the total value of assets borrowed by users from Aave’s lending pools exceeds $22.8 billion.
The acting chair of the Federal Deposit Insurance Corporation (FDIC), the regulatory body overseeing banks in the US, is reportedly considering guidance for tokenized deposit insurance and plans to launch an application process for stablecoins by year’s end.
Acting FDIC Chair Travis Hill, who has made bullish statements about tokenization in the past, told the Federal Reserve Bank of Philadelphia’s Fintech Conference on Thursday that the regulator will eventually release guidance around tokenized deposit insurance, according to reports.
The FDIC protects depositors in the event of a bank failure and insures money in accounts at banks that are insured by the regulator.
“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn’t change the legal nature of it,” Hill said, as reported by Bloomberg.
Excluding stablecoins, the total value of tokenized real-world assets surpassed $24 billion in the first half of the year, with private credit and US Treasurys making up the bulk of the market, according to a report by RedStone.
BlackRock, the world’s largest asset manager, is one of the most prominent players in the space and launched a tokenized money market fund called BUIDL in 2024.
Stablecoin application regime by the end of the year
At the same time, Hill reportedly announced the agency is also working on a regime for stablecoin issuance and expects to issue a proposal for an application process by the end of 2025 as part of its duties in crafting rules under the GENIUS Act, according to Law360.
He said it’s still too early to know how many institutions will be interested, but the FDIC staff is working on the standards around capital requirements, reserve requirements and risk management for FDIC-regulated stablecoin issuers.
Stablecoins have also been a high-growth area, with banks worldwide exploring this technology. The market capitalization of stablecoins is approximately $305 billion as of Friday, according to blockchain analytics platform DefiLlama.
Stablecoins have been a high-growth area this year, with a market capitalization of around $305 billion. Source: DefiLlama
Sir Keir Starmer and Rachel Reeves have scrapped plans to break their manifesto pledge and raise income tax rates in a massive U-turn less than two weeks from the budget.
I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.
The Treasury and Number 10 declined to comment.
The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.
Please use Chrome browser for a more accessible video player
3:53
‘Aren’t you making a mockery of voters?’
The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of “major measures”, according to the Financial Times.
The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
Tory shadow business secretary Andrew Griffith said: “We’ve had the longest ever run-up to a budget, damaging the economy with uncertainty, and yet – with just days to go – it is clear there is chaos in No 10 and No 11.”
How did we get here?
For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.
I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those “working people” he has spoken of so endlessly.
Please use Chrome browser for a more accessible video player
13:06
Ed Conway on the chancellor’s options
But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax – perhaps by 2p – and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).
That way the chancellor can raise several billion in tax from those with the “broadest shoulders” – higher-rate taxpayers and pensioners or landlords, while also trying to protect “working people” earning salaries under £50,000 a year.
The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.
A rough week for the PM
The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.
It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.
Please use Chrome browser for a more accessible video player
3:26
Wes Streeting: Faithful or traitor? Beth Rigby’s take
But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.
Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM’s political capital, makes manifesto-breaking tax rises simply too risky right now.
But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week’s news conference.