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Liberal Democrat peers are poised to ignore a convention dating back to Gladstone’s day to stage a protest against the Rwanda bill in the House of Lords.

The Lib Dem group has announced that its 80 peers will vote against the Safety of Rwanda (Asylum and Immigration) Bill at its second reading next Monday.

It’s a highly unusual move and won’t win support from Labour peers, who regard such tactics as a publicity stunt used by smaller parties like the Lib Dems to gain media coverage.

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And Downing Street is urging peers “not to frustrate the will of the people”, claiming that as the Rwanda bill has the support of the Commons it should be passed by the Lords.

Traditionally, opposition parties don’t vote against government bills at second reading in the Lords, but instead move amendments at committee stage which are then voted on at report stage.

But the Liberal Democrats claim that since the Rwanda policy wasn’t in the Conservative general election manifesto, the convention supported by Labour and the Tories doesn’t apply.

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Last year, the Lib Dems moved a motion to “decline” the government’s Illegal Migration Bill at its second reading in the Lords. That was rejected by 179 votes to 76 and a similar result is likely this time.

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Sunak warns Lords over Rwanda Bill

The deal between the major parties is known as the Salisbury-Addison Convention, which evolved because of big Conservative majorities in the House of Lords during Liberal and Labour governments.

Lord Salisbury was Conservative prime minister in the 1880s and 90s, before and after Liberal giant William Gladstone, and Lord Addison was Labour leader in the Lords after Clement Attlee’s 1945 general election landslide.

But a government defeat in the Lords this week, on a motion to delay ratifying the Rwanda treaty until safeguards have been implemented, has emboldened the Lib Dems to defy the convention again.

In a defeat that spells trouble for Rishi Sunak, peers voted by 214 votes to 171, a hefty majority of 43, in favour of calls for protections to be introduced before deportation flights can take off for Rwanda.

Read more:
Rwanda plan suffers first defeat in House of Lords
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Revealing the Lib Dems’ intention to vote against the bill, a spokesperson told Sky News: “From the beginning, Liberal Democrats have been clear: We have no faith in the Conservatives’ failing Rwanda scheme.

“It’s totally unworkable and extortionately expensive for the taxpayer. Of course, we all want to stop boat crossings in the channel, but this policy will do nothing of the sort.

“So much time and money has already been wasted, with nothing to show for it. Instead, we want a long-term sustainable solution, which must include an efficient processing system to clear the asylum backlog, and safe and legal routes for refugees.

“We have opposed the bill every step of the way, voting against it at every stage in the Commons. It should be no surprise that our strategy will be the same in the Lords.”

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A party source added: “The Rwanda bill is not a manifesto bill. We wouldn’t be voting against it if was in a manifesto. And the convention was a pact between the Tories and Labour. We’re not formally a party to it.

“We voted against the Illegal Migration Bill at second reading and we feel the same way about the Rwanda bill. Since the Lords voted against the treaty this week it makes logical sense to vote against the bill as well.”

But a Labour source told Sky News: “No. We’re not backing it. Why would we stop abiding by our long-term commitment to the Salisbury-Addison convention?

“The whole thing of trying to stop a second reading is obviously a way of a smaller party getting some coverage for something that won’t happen.”

Reacting to the defeat on the Rwanda treaty and looking ahead to the bill’s second reading, a Number 10 Downing Street source told Sky News: “It’s disappointing, but Labour are once again voting against our plans to stop the boats.

“We urge the Lords not to frustrate the will of the people.

“This is the toughest legislation ever introduced in Parliament to tackle illegal migration and makes clear that if you come here illegally you will not be able to stay.

“The bill has the support of the Commons, it is now in the House of Lords. We need to get this through to ensure we get flights off to Rwanda, deter people from making perilous journeys across the Channel and stop the boats.”

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Gensler separates Bitcoin from pack, calls most crypto ‘highly speculative’

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Gensler separates Bitcoin from pack, calls most crypto ‘highly speculative’

Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.

He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”

Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.

“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.

Gensler’s record and industry backlash

Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.

Related: House Republicans to probe Gary Gensler’s deleted texts

The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.

Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg

Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.

The politicization of crypto

Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.

“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”

He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.

Related: Coinbase files FOIA to see how much the SEC’s ‘war on crypto’ cost

ETFs and the drift to centralization

On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”

He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.

Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.

Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.

Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise — Hunter Horsley