Rishi Sunak challenges Lords to pass Rwanda bill – what will happen next?

Published

1 year ago

January 19, 2024

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Rishi Sunak’s flagship Rwanda legislation has been approved by MPs, but getting deportation flights off the ground remains far from a done deal.

Speaking the day after he saw off a rebellion from his own MPs over the bill – who wanted it to be more hardline – he has thrown down the gauntlet to the House of Lords to get the “emergency” law passed.

But what exactly happens next, can the bill be changed – and could it even be stopped from becoming law?

Politics live: PM holds news conference

What did Rishi Sunak say?

Speaking from a lectern in Downing Street, Mr Sunak made clear he plans to heap political pressure on the upper chamber of parliament.

He said: “It’s now time for the Lords to pass this Bill. This is an urgent national priority.

“The treaty with Rwanda is signed and the legislation which deems Rwanda a safe country has been passed unamended in our elected chamber.

“There is now only one question. Will the opposition in the appointed House of Lords try and frustrate the will of the people as expressed by the elected House? Or will they get on board and do the right thing?”

He added: “Will the House of Lords understand the country’s frustration, see the will of the elected House and move as quickly as we have to support this legislation so we can get it on the statute books and then get flights up and running?”

What next?

After passing its third reading in the Commons, the bill has to go through the exact same processes in the House of Lords.

This includes an initial vote – and then if it passes, peers can propose amendments. These would then be debated and voted on.

Due to the Lords regulating itself, the restrictions on the amount of time that can be taken to debate are looser, and so things can move slightly slower than in the Commons.

Unlike in the Commons, the Lords is not bound in the same way by government restrictions on what can be discussed or how long for.

After the House votes on what substantial amendments it wants to make, members “tidy-up” the bill to make sure there are no loopholes.

It is at this point that “ping pong” begins; the bill will bounce between the Commons and Lords, with each house voting on whether to accept the other’s amendments.

There is a potential that the Lords could delay the bill until the next general election – but that is something which will be covered in a later section.

It is worth noting the government does not have a majority in the Lords – with 270 of 785 peers belonging to the Conservative Party.

Over what timeline could this proceed?

Another question is when the Lords will start considering the bill, and when voting will take place.

As with many things to do with the Westminster parliamentary process, very little is set in stone and the best we can do is take an educated guess.

One Labour source set out their expectation of how the next few months will go.

They said the earliest the Lords could have a debate and a vote is in the week starting 29 January.

The next step – when the upper chamber debates the bill and any potential changes – could take place between 12 February and 14 February, when the Commons is in recess.

The next set of voting in the Lords would likely take place towards the end of February or the start of March.

Ping pong would likely begin in the second week of March. If the government gets the bill passed, then it is likely to take a few months for things to be put in place for flights to Rwanda to take off.

Could the Lords block the bill?

In short, yes.

In the first instance, members could simply vote down the legislation, although that is quite unlikely.

Labour has also indicated it plans to abide by the convention of not blocking laws passed in the Commons.

It could also be held up during the ping pong stage.

This would see the two houses adding and removing each other’s amendments on repeated occasions.

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The Lords’ ability to hold up legislation is normally balanced by the fact that a government can reintroduce a bill in a subsequent parliamentary session – which would mean after a King’s Speech – and pass it without the Lords’ consent.

But this step – included in the Parliament Act – also requires a minimum of a year between the first Commons vote on the legislation, and it passing the same House in the subsequent parliament.

Because an election needs to be called in December this year at the latest, it is possible for the Lords to wait out the clock until then – preventing the use of the Parliament Act.

In what may prove a difficult development for the government, a committee set up to evaluate international treaties on behalf of the Lords has recommended the treaty upon which the Safety of Rwanda Bill is based should not be ratified.

The International Agreements Committee said ratification “should wait until parliament is satisfied that the protections it provides have been fully implemented since parliament is being asked to make a judgement, based on the treaty, about whether Rwanda is safe“.

Politics

Stablecoins are the best way to ensure US dollar dominance — Web3 CEO

Published

7 hours ago

April 6, 2025

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Stablecoins are the best way to ensure US dollar dominance — Web3 CEO

Stablecoins are the single best tool for the United States government to maintain the US dollar’s hegemony in global financial markets, according to LayerZero Labs CEO and founder Bryan Pellegrino.

In an interview with Cointelegraph, the CEO of LayerZero Labs, which created the LayerZero interoperability protocol recently chosen by Wyoming to be the distribution partner for the Wyoming stablecoin, said that the cross-border accessibility of dollar-pegged tokens makes them an obvious choice to drive US dollar demand. Pellegrino added:

“Stablecoins for the US dollar are the single best tool — the last Trojan Horse or vampire attack on every single other currency in the world — whether it is Argentina, whether it is Venezuela, whether it is all of the countries that have massive inflation.”

The CEO said he expects support for stablecoins on both the federal and state levels to grow because of the obvious boost stablecoins give to the US dollar in foreign exchange markets and the financial moat stablecoin-driven demand will create around the US dollar’s global reserve currency status.

Dollar, US Government, Stablecoin — *Stablecoin market overview. Source:* *RWA.XYZ*

US government looks to stablecoins to protect US dollar

Pellegrino cited Tether’s emerging role as one of the largest buyers of US Treasury bills in the world as evidence of the demand for US debt instruments from stablecoin issuers.

Tether recently became the seventh-largest holder of US Treasuries, beating out Canada, Germany, Norway, Hong Kong, and Saudi Arabia.

Speaking at the White House Crypto Summit on March 7, US Treasury Secretary Scott Bessent said the Trump administration would leverage stablecoins to extend US dollar hegemony and indicated this would be a top priority for officials in 2025.

According to a 2023 report from Chainalysis, over 50% of all the digital asset value transferred to countries in the Latin American region, including Argentina, Brazil, Columbia, Mexico, and Venezuela was denominated in stablecoins.

The low transaction fees, relative stability, and near-instant settlement times for dollar-pegged stablecoins make these real-world tokenized assets ideal for remittances and stores of value for residents in developing countries suffering from high inflation and capital controls.

Magazine: Bitcoin payments are being undermined by centralized stablecoins

Politics

CFPB likely to step back from crypto regulation — Attorney

Published

9 hours ago

April 6, 2025

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CFPB likely to step back from crypto regulation — Attorney

The Consumer Financial Protection Bureau (CFPB) will likely see a reduced role in crypto regulations as other federal agencies like the Securities and Exchange Commission (SEC) and state-level regulators assume a bigger role in crypto policy, according to Ethan Ostroff, partner at the Troutman Pepper Locke law firm.

“I think with the current administration, my sense is, we are highly likely to see a significant pullback by the CFPB in the context of the activity by other regulators,” Ostroff told Cointelegraph in an interview.

State regulators also have the authority under the Consumer Financial Protection Act (CFPA) to assume some of the regulatory roles of the CFPB, the attorney said but also added that some regulatory functions will continue to fall within the purview of the CFPB as a matter of established law.

Ostroff cited the New York Department of Financial Services (NYDFS) and the California Department of Financial Protection and Innovation (DFPI) as regulators to keep an eye on as potential leaders of crypto regulations at the state level.

However, the attorney clarified that while the CFPB may see a diminished role during the Trump administration, the agency would not be outright dismantled during the current regime due to “statutorily mandated obligations and requirements” that require acts of Congress to change.

Trump administration targets CFPB in efficiency push

The Trump administration targeted the CFPB as part of a broader push by the Department of Government Efficiency (DOGE) to slash government spending and reduce the federal debt.

Russell Vought, the recently appointed head of the CFPB, announced major funding cuts to the agency and scaled back operations within days of assuming the helm at the CFPB in February 2025.

Bitcoin Regulation, US Government, United States, Donald Trump — *Source:* *Russell Vought*

Massachusetts Senator Elizabeth Warren criticized Elon Musk for dismantling the CFPB, which the US senator co-founded back in 2007.

Warren characterized Musk as a “bank robber” and claimed that the Trump administration dismantled the CFPB to undo consumer protection rules and have greater control over the financial system.

In a February 12 interview with Mother Jones, the senator stressed that the Executive Branch of government does not have the statutory authority to fully dismantle the CFPB, which can only be done through Congressional approval.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Politics

Nearly 400,000 FTX users risk losing $2.5 billion in repayments

Published

16 hours ago

April 6, 2025

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Nearly 400,000 FTX users risk losing .5 billion in repayments

Nearly 400,000 creditors of the bankrupt cryptocurrency exchange FTX risk missing out on $2.5 billion in repayments after failing to begin the mandatory Know Your Customer (KYC) verification process.

Roughly 392,000 FTX creditors have failed to complete or at least take the first steps of the mandatory Know Your Customer verification, according to an April 2 court filing in the US Bankruptcy Court for the District of Delaware.

FTX users originally had until March 3 to begin the verification process to collect their claims.

“If a holder of a claim listed on Schedule 1 attached thereto did not commence the KYC submission process with respect to such claim on or prior to March 3, 2025, at 4:00 pm (ET) (the “KYC Commencing Deadline”), 2 such claim shall be disallowed and expunged in its entirety,” the filing states.

Nearly 400,000 FTX users risk losing $2.5 billion in repayments — *FTX court filing. Source:* *Bloomberglaw.com*

The KYC deadline has been extended to June 1, 2025, giving users another chance to verify their identity and claim eligibility. Those who fail to meet the new deadline may have their claims permanently disqualified.

According to the court documents, claims under $50,000 could account for roughly $655 million in disallowed repayments, while claims over $50,000 could amount to $1.9 billion — bringing the total at-risk funds to more than $2.5 billion.

The next round of FTX creditor repayments is set for May 30, 2025, with over $11 billion expected to be repaid to creditors with claims of over $50,000.

Under FTX’s recovery plan, 98% of creditors are expected to receive at least 118% of their original claim value in cash.

How FTX users can complete KYC

Many FTX users have reported problems with the KYC process.

However, users who were unable to submit their KYC documentation can resubmit their application and restart the verification process, according to an April 5 X post from Sunil, FTX creditor and Customer Ad-Hoc Committee member.

Impacted users should email FTX support (support@ftx.com) to receive a ticket number, then log in to the support portal, create an account, and re-upload the necessary KYC documents.

FTX’s Bahamian subsidiary, FTX Digital Markets, processed the first round of repayments in February, distributing $1.2 billion to creditors.

The crypto industry is still recovering from the collapse of FTX and more than 130 subsidiaries launched a series of insolvencies that led to the industry’s longest-ever crypto winter, which saw Bitcoin’s (BTC) price bottom out at around $16,000.

While not a “market-moving catalyst” in itself, the beginning of the FTX repayments is a positive sign for the maturation of the crypto industry, which may see a “significant portion” reinvested into cryptocurrencies, Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph.