Tory MP Chris Skidmore quits over oil and gas drilling
Rishi Sunak is facing another by-election headache after a former Conservative minister quit the Commons over the government’s green policy.
Chris Skidmore, who was energy minister under Theresa May and also in government under Boris Johnson, announced last week he would be leaving his role as an MP.
His resignation coincides with a vote in the House of Commons on the government’s plans to offer new licences for oil and gas drilling in the North Sea.
Politics latest: PM addresses calls to remove ex-Post Office boss’s CBE
Politics Hub with Sophy Ridge
Sky News Monday to Thursday at 7pm.
Watch live on Sky channel 501, Freeview 233, Virgin 602, the Sky News website and app or YouTube.
Mr Sunak angered some in his party when he watered down the government’s net zero plans last year, with Mr Skidmore a vocal proponent of green energy and policies.
In his resignation letter, he said was quitting “in protest at the government’s decision to prioritise and politicise new oil and gas licences above a sensible investment plan for the future”.
He said while the government had “once led in promoting climate action” at the COP26 climate summit, it was now opposing the likes of the International Energy Agency and the UN’s climate change committee.
“We should be taking the long-term decisions for the future of our country that protect our citizens, our economy, and our planet, not playing short-term politics with legislation that achieves so little but does so much to destroy the reputation of the UK as a climate leader,” he added.
Read more:
Chancellor: Skidmore ‘wrong’ on North Sea oil and gas
PM to give system of awarding new oil and gas licences green light
Mr Skidmore’s resignation means there will be a by-election in his Kingswood seat, where he has a majority of 11,220.
That margin is far smaller than in the last two by-election upsets Labour handed to the Tories, when a 24,664-vote majority was overturned in Mid Bedfordshire and 19,634 in Tamworth.
Mr Sunak already faces having to defend Wellingborough after constituents ousted scandal-hit Peter Bone.
Mr Skidmore is not the only Conservative MP to signal his unhappiness with the new oil and gas drilling.
Alok Sharma, who was president for the UN’s COP26 climate conference in the UK, has said he will not support the bill – although this may mean he abstains rather than opposes it.
Click to subscribe to Politics at Jack and Sam’s wherever you get your podcasts
The vote is on the second reading of the Offshore Petroleum Licensing Bill – this is the first time the potential law is voted on, but it is still a long way from becoming law.
MPs and peers will still be able to amend it, and the House of Lords and Commons will also have further votes.
Employees who were furloughed during the US government shutdown are expected to return to work at the Securities and Exchange Commission and Commodity Futures Trading Commission after 43 days away.
According to the operations plans with the SEC and CFTC, staff are expected to return on Thursday, following US President Donald Trump’s signing of a funding bill late on Wednesday to resume federal operations.
The two agencies’ respective plans require employees to come in on the “next regularly scheduled workday […] following enactment of appropriations legislation,” which acting CFTC chair Caroline Pham appeared to confirm in a Thursday X post.
Amid the government shutdown, both agencies had fewer staff and reduced operations. In the SEC’s case, this limited its ability to review applications for exchange-traded funds, including those tied to cryptocurrencies. The CFTC’s plan said it would “cease the vast bulk of its operations,” including enforcement, market oversight and work on regulatory rulemaking.
With the reopening of the government, however, the SEC and CFTC may need some time to catch up on activities, such as reviewing registration applications submitted in the previous 43 days. Some companies submitted IPO and ETF applications amid reports that the shutdown would likely end soon.
“I’m sure some [companies] took the position that they could just submit [an application to the SEC] knowing it’s not going to be looked at until they get back, but at least they’re in the queue,” Jay Dubow, a partner at law firm Troutman Pepper Locke, told Cointelegraph.
He also warned of the possible ramifications of the SEC going through repeated shutdowns:
“Every time you go through something like this, there’s the risk of things just slipping through the cracks in various ways.”
Related: Last US penny minted shows why savers need Bitcoin
During the shutdown, officials with both financial regulators regularly spoke at conferences on their approach to cryptocurrencies, sometimes commenting on their availability and addressing the reduced operations.
“Within limits, we’re still obviously functioning,” said SEC Chair Paul Atkins on Oct. 7, less than a week into the lapse in appropriations. “There are restrictions on what we can and can’t do, especially for staff […] I can still come and do things like this [referring to the conference].”
Before the funding bill had been resolved, Akins said that the SEC planned to consider “establishing a token taxonomy” in the coming months, “anchored” in the Howey test to recognize that “investment contracts can come to an end.” Pham, similarly, said the CFTC had been pushing for approval of leveraged spot cryptocurrency trading as early as December.
Prospective CFTC chair scheduled for Senate hearing
Michael Selig, who serves as chief counsel for the SEC’s crypto task force, is scheduled to appear before the Senate Agriculture Committee on Wednesday as part of Trump’s push to have him confirmed as the next CFTC chair. Though the hearing could likely have moved forward amid the shutdown, Selig’s authority with the agency, had he been confirmed, would have been severely limited.
Pham is expected to leave her position as acting chair should the Senate confirm Selig. However, even if he were to be installed quickly, the CFTC would still face a dearth of leadership, with only one Senate-confirmed commissioner out of the usual five.
Magazine: 2026 is the year of pragmatic privacy in crypto: Canton, Zcash and more
The United Kingdom needs to regulate and encourage the development of British pound stablecoins to keep the country’s financial services sector globally competitive, according to Mark Fairless, the group CEO of bank infrastructure and fintech company ClearBank.
“Stablecoins are a logical extension to reduce friction in international global payments,” Fairless told Cointelegraph in an interview at Web Summit 2025 in Lisbon, Portugal.
He said that pound stablecoins will never equal the market capitalization of dollar or euro-denominated tokens because it isn’t a global reserve currency.
However, the UK needs a British pound stablecoin to remain commercially competitive as the world shifts to onchain finance and internet capital markets, Fairless said. He told Cointelegraph:
“From a capability perspective for the UK, the ability to settle payments internationally in real time requires a GBP stablecoin, and if we don’t have one, we risk falling behind other financial sectors.
“The financial services market in the UK is one of our strongest parts of the economy, and so, stablecoins are a logical place to go next,” he said, adding that the effect of stablecoins on the banking sector and traditional business models remains to be seen.
Stablecoins have become geostrategically relevant as governments respond to growing pressure to place their fiat currencies onchain to remain competitive with countries that integrate digital and blockchain rails into their economies.
Related: Bank of England’s Breeden warns watered-down stablecoin rules risk stability
Bank of England vows to keep pace with the US on stablecoins
Sarah Breeden, deputy governor for the Bank of England, the UK’s central bank, said the country will keep pace with US stablecoin regulations and work closely with international partners to synchronize regulatory efforts.
Breeden also urged a cautious approach and warned against loosening stablecoin regulations to the point where the asset class poses a systemic risk to the banking sector.
The Bank of England published a consultation paper on Monday outlining a proposed regulatory framework for stablecoins in the UK.
The proposal included potential reserve requirements, asset taxonomy, and risk management regulations for stablecoin issuers and is open for industry feedback until February 2026, with finalized regulations expected in the second half of the year.
Magazine: Unstablecoins: Depegging, bank runs, and other risks loom
Key takeaways
-
The Fed’s Dec. 9-10 meeting carries unusual weight as markets wait to see whether another rate cut will arrive before Christmas, shaping bonds, equities and crypto.
-
After two cuts in 2025, rates now sit at 3.75%-4.00%. Labor weakness and softer inflation support further easing, but officials remain divided because inflation risks have not fully cleared.
-
A cooling job market, easing inflation and the end of quantitative tightening could justify another reduction and align with year-end liquidity needs.
-
Sticky inflation, gaps in economic data caused by the government shutdown and a divided Fed may push policymakers to keep rates unchanged this December.
When the US Federal Reserve meets on Dec. 9-10 to decide on interest rates, it will not be just another routine gathering. Markets are watching closely to see what direction policymakers choose. Will the Fed cut rates again before the holidays? A pre-Christmas Eve reduction could send waves through bonds, stocks, credit markets and crypto.
This article explains why the Fed’s pre-Christmas meeting is significant and outlines the factors supporting or opposing a potential rate cut. It also highlights what to watch in the coming weeks and how a Fed move could affect crypto and other financial markets.
The background of a December rate cut
Central banks typically cut rates when inflation is easing, economic growth slows or financial conditions become too tight. In late October, the Federal Reserve lowered rates by 25 basis points, setting the federal funds target range at 3.75%-4.00%, its lowest level since 2022. The move followed another 25-basis-point cut in September 2025, making it the Fed’s second rate reduction of the year.
The move came amid clear signs of a cooling labor market. October recorded one of the worst monthly layoff totals in more than two decades, according to multiple labor-market reports, reinforcing concerns about weakening job conditions. The Fed’s October statement echoed this trend, noting that risks to employment had increased even as inflation remained somewhat elevated.
At a press conference, Fed Chair Jerome Powell stressed that a December cut is “not a foregone conclusion.” Yet economists at Goldman Sachs still expect a cut, pointing to clear signs of labor market weakness. Fed officials remain divided, with some emphasizing inflation risks and the limited room for further easing.
A December rate cut is possible, but it is not guaranteed.
Factors supporting a potential rate cut
There are several reasons the Fed may decide to cut rates:
-
Cooling labor market: Private sector data shows softer hiring, rising layoffs and a slight increase in unemployment.
-
Moderating inflation: Inflation is still above target but continues to trend lower, giving the Fed more flexibility to ease policy.
-
Ending quantitative tightening: The Fed has announced it will stop reducing the size of its balance sheet beginning Dec. 1.
-
Pre-holiday timing: A rate cut would align with year-end liquidity needs and help set expectations for 2026.
Arguments for the Fed to postpone action
Several factors suggest the Fed may delay a rate cut in the near future:
-
Sticky inflation: According to the Fed’s latest statement, the inflation rate remains “somewhat elevated.”
-
Data vacuum: The US government shutdown has delayed key employment and inflation reports, making policy assessments more difficult.
-
Committee division: Federal Reserve officials are split on the appropriate path forward, which encourages a more cautious approach.
-
Limited room for easing: After multiple cuts this year, some analysts argue that policy is already close to a neutral level.
Did you know? In March 2020, the Fed cut interest rates to near zero to respond to the COVID-19 crisis. It lowered rates by a total of 1.5 percentage points across its meetings on March 3 and March 15.
What to monitor before December
These factors are likely to shape the Fed’s upcoming policy decision on rate cuts:
-
Nonfarm payrolls and unemployment: Is the job market continuing to slow?
-
Inflation data: Any unexpected rise in inflation will reduce expectations for policy easing.
-
Financial conditions and market signals: Are credit spreads widening, and is overall market liquidity tightening?
-
Fed communications: Differences of opinion within the Federal Open Market Committee (FOMC) may influence the outcome.
-
External shocks: Trade developments, geopolitical risks or sudden supply disruptions could shift the Fed’s approach.
Did you know? US stocks have historically returned about 11% in the 12 months after the Fed begins cutting rates.
How a Federal Reserve cut may impact crypto
Fed rate cuts increase global liquidity and often push investors toward riskier assets like crypto in search of higher returns. Bitcoin (BTC) and Ether (ETH) tend to benefit from stronger risk appetite and rising institutional inflows. Lower decentralized finance (DeFi) borrowing rates also encourage more leverage and trading activity. Stablecoins may see greater use in payments, although their yield advantage narrows when rates fall.
However, if a rate cut is interpreted as a signal of recession, crypto may experience equity-like volatility. Markets might see an initial boost from easier liquidity, followed by a pullback driven by broader macro concerns. If global financial conditions loosen instead, the environment could support further crypto demand.
Lower borrowing costs make it easier for people and institutions to take investment risks, which can draw more interest toward digital assets. As more money flows into the sector, crypto companies can build better tools and services, helping the industry connect more smoothly with the rest of the financial system.
Did you know? When the Fed cuts rates, short-term bond yields usually fall first, creating opportunities for traders who track movements in the yield curve.
Consequences of a Fed rate cut on other financial sectors
Here is a look at the potential effects on major asset classes if the Fed cuts interest rates:
-
Bonds and yields: Short-term yields will likely decline as markets adjust their expectations. The yield curve may steepen if long-term yields remain stabler than short-term ones, which can signal confidence in future growth. If the cut is viewed as a sign of recession risk, long-term yields may fall as well, resulting in a flattening or even an inversion of the curve.
-
US dollar and global FX: A rate cut generally weakens the dollar because interest rate differentials narrow. This often supports emerging markets and commodity-exporting countries. If the cut is driven by concerns about economic growth, safe-haven demand may temporarily push the dollar higher.
-
Equities: A pre-Christmas Eve rate cut could spark a rally in US stocks if investors see it as a sign of confidence in a soft landing. A soft landing refers to cooling inflation alongside a stable labor market. If the cut is motivated by growth worries instead, corporate earnings may come under pressure, and defensive sectors could outperform cyclical ones.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024