Tory deputy chairmen resign party roles as government suffers significant rebellion on Rwanda bill

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1 year ago

January 16, 2024

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Two deputy chairs of the Conservative Party have resigned from their roles after they both supported rebel amendments to Rishi Sunak’s Rwanda bill.

Lee Anderson and Brendan Clarke-Smith both said they would support proposed changes designed to toughen up Mr Sunak’s bill, which seeks to declare Rwanda a safe country to deport asylum seekers to.

Jane Stevenson, a parliamentary private secretary (PPS) in the Department for Business and Trade, resigned from her role after she supported two key rebel amendments.

On Tuesday night, MPs voted on a series of amendments to the Safety of Rwanda Bill, including one submitted by veteran Tory MP Sir Bill Cash, whose amendment sought to disapply international law with regard to Rwanda being a safe country.

Politics latest: ‘Big’ Tory rebellion on PM’s Rwanda bill will cause ‘jitters’ in Tory high command

In total, 70 MPs backed Sir Bill’s amendment.

Sixty Tories, including two tellers who verify the count, supported the amendment, as did two independent MPs who were formerly in the Conservative parliamentary party – Scott Benton and Andrew Bridgen.

They were joined by eight MPs in the Democratic Unionist Party.

However, the amendment was rejected by 529 votes to 68, leaving a majority of 461.

Among the names who backed the amendment were former prime minister Liz Truss, ex-home secretary Suella Braverman, former immigration minister Robert Jenrick and the leaders of the New Conservatives Miriam Cates and Danny Kruger.

The result represents a significant rebellion and potentially spells trouble for the prime minister ahead of the third reading vote on the whole bill on Wednesday, when rebels may vote against it.

Speaking to Sky News’ political editor Beth Rigby, Tory MP Mark Francois said the numbers “speak for themselves” and that he hoped the government “will listen and take stock” and possibly tighten the bill.

Mr Kruger, the co-chair of the New Conservatives, told the Politics Hub with Sophy Ridge he was “prepared” to vote against the bill at third reading.

Warning signs for the prime minister

Sam Coates

Deputy political editor

@SamCoatesSky

Tory Rwanda rebels have shown their hand.

They have been able to demonstrate their side is willing to go further than before Christmas – and that they have the numbers to defeat the government on Wednesday.

The question now is whether the government is prepared to risk a defeat by going ahead on Wednesday, or whether ministers abandon a plan to hold a vote in fear of defeat.

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“I really hope that the scale of the vote in favour of the amendments that were debated today will convince the government that they really should adopt these amendments as their own,” he said.

However, in an illustration of the dilemma Mr Sunak faces in appeasing the various factions of his party, Damian Green, chair of the One Nation group of moderate Tory MPs, said he would vote against the bill if it was toughened up further as the right-wing rebels demand.

But, he said he believed the “high watermark” of the Rwanda rebellion was reached on Tuesday evening.

Mr Sunak had been prepared for a collision with right-wing Tories over the bill, which is aimed at reviving Mr Sunak’s plan to send asylum seekers to Rwanda if they attempt to come to the UK via small boat crossings in the Channel.

The bill, which is designed to enable parliament to confirm Rwanda is a “safe country”, gives ministers the powers to disregard sections of the Human Rights Act, but does not go as far as allowing them to dismiss the European Convention on Human Rights (ECHR) entirely – a demand of some on the right.

As well as the amendment by Sir Bill, MPs also voted on an amendment by Mr Jenrick which sought to make it more difficult for individuals to make claims against their deportation.

MPs rejected it by 525 votes to 61 votes, among them 59 Tories, including tellers.

In a joint resignation letter, Mr Anderson and Mr Clarke-Smith said they supported the amendments “not because we are against the legislation, but because like everybody else we want it to work”.

“Our support for the party and this government remains as strong as ever and that is why we are so passionate about making this legislation work.

“However, we fully appreciate that with such important roles there is also the issue of being bound by collective responsibility.

“It is with this in mind that we fully appreciate that whilst our main wish is to strengthen the legislation, this means that in order to vote for amendments we will therefore need to offer you our resignations from our roles.”

Liberal Democrat home affairs spokesperson Alistair Carmichael MP said: “Sunak’s Rwanda scheme just won’t work – and even the deputy chairmen of his own party know it.

“Rishi Sunak has yet again been embarrassed by his own MPs.”

A Downing Street source said Mr Sunak accepted the resignations of Mr Anderson and Mr Clarke-Smith and added: “This is the toughest legislation ever brought before parliament to tackle illegal migration.

“This bill will make it clear that if you come here illegally you will not be able to stay. We must pass this bill to deliver what all Conservatives want – a credible plan to stop the boats.”

Politics

SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

Published

1 hour ago

April 2, 2025

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

The US Securities and Exchange Commission and crypto exchange Gemini have asked to pause the regulator’s suit over the exchange’s Gemini Earn program, saying they want to discuss a potential resolution.

In an April 1 letter to New York federal court judge Edgardo Ramos, lawyers representing the SEC and Genesis requested a 60-day hold on the case and that all deadlines be pulled “to allow the parties to explore a potential resolution.”

“In this case, the parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay,” the letter states.

The lawyers added that a stay was in the court’s interest as “a resolution would conserve judicial resources” and proposed that a joint status report be submitted within 60 days after the entry of the stay.

The SEC sued Gemini and crypto lending firm Genesis Global Capital in January 2023, alleging they offered unregistered securities through the Gemini Earn program.

In March 2024, Genesis agreed to pay $21 million to settle charges related to the lending program, but the enforcement case against Gemini remains outstanding.

The letter did not specify what a possible resolution would entail, but the SEC has dropped several lawsuits it launched against crypto companies under the Biden administration, including against Coinbase, Ripple and Kraken.

In February, Gemini said the SEC closed a separate investigation into the firm as the regulator winds back its crypto enforcement under President Donald Trump.

“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course, Gemini is not alone,” Gemini co-founder Cameron Winklevoss said at the time.

OpenSea, Crypto.com and Uniswap, among others, have also recently reported that the SEC had closed similar probes into their companies that were investigating alleged breaches of securities laws.

Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29

Politics

Crypto PAC-backed Republicans win US House seats in Florida special elections

Published

1 hour ago

April 2, 2025

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Crypto PAC-backed Republicans win US House seats in Florida special elections

Two Republicans who received a combined $1.5 million from the crypto-backed political action committee (PAC) Fairshake will enter the US House after winning special elections in Florida.

Republican Jimmy Patronis won the vacant seat in Florida’s 1st Congressional District to replace Matt Gaetz, taking 57% of the vote to defeat Democrat Gay Valimont, according to AP News data.

Randy Fine also took Florida’s 6th Congressional District with 56.7% of the vote to beat his Democratic rival, public school teacher Josh Weil, and fill a seat left vacant by Mike Waltz, who took a job as White House national security adviser.

Florida’s 1st and 6th Congressional Districts — located in Florida’s western panhandle and along the state’s northeast coast — have been controlled by Republicans for roughly 30 years, but their lead has narrowed in recent years.

Fairshake, a PAC backed by crypto industry giants including Coinbase, Ripple and Andreessen Horowitz, gave Fine around $1.16 million in advertising spending and funneled $347,000 to Patronis to support his campaign.

Both Republicans have expressed support for the crypto industry, with Fine stating in a Jan. 14 X post that “Floridians want crypto innovation!”

Fairshake and its affiliates poured around $170 million into the 2024 US presidential and congressional elections to back candidates who committed to supporting the crypto industry.

The wins by Patronis and Fine increased Republican representation in the House to 220 seats, with the Democrats holding 213 seats.

There are two vacant seats to be filled after Texas and Arizona Democrats Sylvester Turner and Raúl Grijalva died on March 5 and March 13, respectively.

Florida can expect to see a crypto-friendly regulatory environment

The victories for Patronis and Fine likely mean that crypto legislation will continue to see support in the US capital.

The Republican Party would have maintained its House majority even if it lost both seats in Florida, but it would have made it more difficult for some of the recently introduced Republican-backed crypto bills to pass through the House and Senate.

At the Digital Assets Summit on March 18, Democratic Congressman Ro Khanna said he believes Congress “should be able to get” both a stablecoin and crypto market structure bill done this year.

Bills that could eventually make their way to the House include the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which passed the Senate Banking Committee in an 18-6 vote on March 13.

Senator Cynthia Lummis also reintroduced a Bitcoin reserve bill about a week after the Trump administration announced the establishment of a Strategic Bitcoin Reserve on March 6, with the legislation referred to the Senate Banking Committee on March 11.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Politics

UK trade bodies ask government to make crypto a ‘strategic priority’

Published

3 hours ago

April 2, 2025

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UK trade bodies ask government to make crypto a ‘strategic priority’

Several British trade associations have asked Prime Minister Keir Starmer’s office to appoint a special envoy dedicated to crypto and for a dedicated action plan for digital assets and blockchain technology.

In a March 31 letter, the coalition of six UK digital economy trade bodies urged Starmer’s special adviser on business and investment, Varun Chandra, for a “greater strategic focus and alignment to deliver investment, growth and jobs” for the crypto industry.

The group, which consisted of the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation and techUK, noted the US policy shift on crypto under President Donald Trump and his appointment of a crypto czar.

Britain’s commitment to an economic trade deal focused on technological cooperation with the US “presents a significant opportunity to mirror the United States’ ambition in fostering leadership in blockchain, digital assets, and other emerging financial technologies,” the letter stated.

The group recommended that the UK appoint a blockchain special envoy, similar to the US, to coordinate policy, foster innovation, and position the country competitively in global markets.

The trade bodies also called for the development of a dedicated government action plan for crypto and blockchain technology, including a concierge service to attract high-potential firms.

They added that the government should acknowledge and leverage the commonalities between blockchain, quantum computing and artificial intelligence technologies, including potential applications for government services.

Another recommendation was to create a high-level industry-government-regulator engagement forum to ensure informed decision-making and cross-sector collaboration.

“With deep pools of talent, access to capital, world-class academic institutions, and sophisticated regulators, the UK provides an environment where digital assets and blockchain innovation can thrive,” they stated.

The coalition argues that crypto and blockchain technology could boost the UK economy by 57 billion British pounds ($73.6 billion) over the next decade, with the sector potentially increasing global gross domestic product by 1.39 trillion pounds ($1.8 trillion) by 2030.

Tom Griffiths, the co-founder and managing partner of crypto compliance advisory firm BitCompli, said in response to the letter on LinkedIn that the Financial Conduct Authority “has a lot of talent and a good sight of future plans, but the UK is definitely losing pace with Dubai, Singapore, and other EU jurisdictions.”

“Now is the time for the FCA to act, or the UK will lose out on this huge opportunity, which is digital assets and all the benefits this sector can bring, not only now but over the next 20 years,” he added.

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