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A Conservative minister says he does not believe his party’s biggest donor is a racist, despite alleged comments he made about former Labour MP Diane Abbott – apparently saying she made him “want to hate all black women”.

Rishi Sunak took the whole of Tuesday to call out the remarks from businessman Frank Hester – first reported in the Guardian – eventually saying they were “racist and wrong”.

But despite the condemnation, the prime minister said remorse from the donor “should be accepted”.

Politics live: Sunak expected to face ‘storm’ at PMQs

Ahead of today’s Prime Minister’s Questions (PMQs), business minister Kevin Hollinrake repeated Mr Sunak’s criticism, telling Wilfred Frost on Sky News that the alleged comments were “clearly racist and wrong and there’s no question… you don’t judge somebody’s character based upon their skin colour”.

However, he added: “I think the key thing now is, is Mr Hester himself a racist? I don’t believe so from what I know, and I don’t know him.

“But I think in the context of what we know in the situation that we know right now, we should try and move on from this now, and I think that’s the right thing to do.”

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Mr Hollinrake also appeared to reject calls from opposition parties for the Conservatives to return donations from Mr Hester and his company, healthcare software firm The Phoenix Partnership, totalling £10m.

“I think we should judge in the whole context,” he said. “We’ve got the most diverse cabinet in history. We’ve got the first British Asian prime minister in this country. We’re not a racist party.”

Asked if the Tories were “content to spend” the businessman’s money, the minister replied: “Well, on the basis he’s not a racist and has apologised for what he said, yes.”

After the reports first emerged, Mr Hester – who has personally donated over £5m to the Conservatives since the 2019 election – said he was “deeply sorry” for the “rude” remarks he made about Ms Abbott, including apparently saying she “should be shot”.

But he insisted they had “nothing to do with her gender nor colour of skin”.

Since then, the Guardian has reported further comments he is alleged to have made to staff, asking a meeting if there was “no room for the Indians”, before suggesting employees climb on a train roof.

Mr Hester has not responded to the latest allegations.

In a statement on Tuesday, Ms Abbott said it was “frightening” and “alarming” to hear the comments allegedly made about her, especially after the murders of two MPs – Labour’s Jo Cox and Conservative Sir David Amess – in recent years.

“I am a single woman and that makes me vulnerable anyway,” she added. “But to hear someone talking like this is worrying.”

The Metropolitan Police confirmed last night they were assessing the alleged remarks from Mr Hester after officers from the parliamentary liaison and investigation team contacted them.

A spokesperson said both the force and the parliament team were staying in contact with Ms Abbott.

Labour also confirmed yesterday that they were supporting Ms Abbott, despite her being suspended from the party.

Read more:
Who is Tory donor Frank Hester and what did he reportedly say about Diane Abbott?
‘You should be deported b***h’: Day out with Muslim MP reveals threats to her safety

Tory ministers faced growing criticism throughout the course of Tuesday as they refused to call Mr Hester’s alleged remarks racist – including Mr Sunak’s official spokesperson.

In the morning, Work and Pensions Secretary Mel Stride told broadcasters the comments were “inappropriate”, but said they weren’t “gender-based or a race-based”, while energy minister Graham Stuart said his party still “welcomed” those who financially supported them.

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Despite condemning Frank Hester’s alleged remarks, minister Graham Stuart warned against “cancelling” the businessman

However, in the afternoon, Business Secretary Kemi Badenoch posted on X to say the comments were “racist”, though adding there should be “space for forgiveness”.

By the evening, the prime minister finally released his own statement, saying: “The comments allegedly made by Frank Hester were racist and wrong. He has now rightly apologised for the offence caused and where remorse is shown it should be accepted.”



But on Wednesday morning, another business minister, Nus Ghani, appeared to take a swipe at her party’s response, tweeting: “Zero tolerance on racism is just a slogan in today’s politics.

“[I] am reminded of Toni Morrison’s quote: ”The people who do this thing, who practice racism, are bereft. That is something distorted about the psyche. It’s a huge waste and it’s a corruption and a distortion’.”

Labour’s shadow paymaster general, Jonathan Ashworth, told Sky News it was “absolutely staggering it took Rishi Sunak 24 hours to condemn these racist, reprehensible comments about Diane Abbott”, saying it showed how “weak” the prime minister was.

He added: “Fundamentally, [Mr Sunak has] taken £10m from this individual. Every Tory MP and candidate handing out leaflets, paying for Facebook advertising, it’s funded by this £10m from this individual, who has made these deeply, deeply racist offensive comments.

“If Rishi Sunak had anything about him, if he had any backbone, he would pay that money back today.”

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Labour MP Dawn Butler MP tells Sky News she found Frank Hester’s remarks about Dianne Abbott “triggering”

According to the Westminster Accounts project – a joint venture between Sky News and Tortoise Media to shine a light on how money works in politics – Mr Hester’s Phoenix Partnership has donated £5.1m to the Conservatives since 2019.

The company also made a single donation of £15,900 to Mr Sunak and, according to the prime minister’s entry in the register of members’ financial interests, it involved the “provision of [a] helicopter to fly me to a political visit and event on 23 November 2023”.

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SEC chair suggests ‘huge benefits’ in agency’s third crypto roundtable

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<div>SEC chair suggests 'huge benefits' in agency's third crypto roundtable</div>

<div>SEC chair suggests 'huge benefits' in agency's third crypto roundtable</div>

In one of his first appearances as the recently sworn-in chair of the US Securities and Exchange Commission, Paul Atkins delivered remarks to the agency’s third roundtable discussion of crypto regulation. 

In the “Know Your Custodian” roundtable event on April 25, Atkins said he expected “huge benefits” from blockchain technology through efficiency, risk mitigation, transparency, and cutting costs. He reiterated that among his goals at the SEC would be to facilitate “clear regulatory rules of the road” for digital assets, hinting that the agency under former chair Gary Gensler had contributed to market and regulatory uncertainty. 

“I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational fit-for-purpose framework for crypto assets,” said Atkins.

SEC chair suggests 'huge benefits' in agency's third crypto roundtable
SEC chair Paul Atkins addressing the April 25 crypto roundtable. Source: SEC

Some critics of US President Donald Trump see Atkins’ nomination to lead the SEC as a nod to the crypto industry, acting on campaign promises to remove Gensler — the former chair resigned the day Trump took office — and cut back on regulation. Democratic lawmakers on the Senate Banking Committee questioned Atkins on his ties to the industry, potentially presenting conflicts of interest in his role regulating crypto.

Related: Atkins SEC era sparks massive industry optimism, crypto execs speak out

The direction of the SEC under new leadership

“We’ve noticed that we don’t have to be as concerned […] about being accused of things that we’re not doing, like being broker-dealers for securities,” Exodus chief legal officer Veronica McGregor, who participated in the roundtable, told Cointelegraph on April 24.”It’s just a less scary regulatory environment in general. It is, however, still unclear what the ultimate regs are going to look like for crypto.” 

The SEC crypto task force is scheduled to hold two more roundtables in May and June to discuss tokenization and decentralized finance, respectively. Commissioner Hester Peirce, who leads the task force, told Cointelegraph in March that she welcomed the opportunity to work with Atkins to “reorient the agency,” hinting at an SEC with regulations more favorable to the crypto industry.

In addition to the roundtables, the crypto task force has reported several meetings with digital asset firms to discuss various policies and considerations in developing a regulatory framework.

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

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Nasdaq urges SEC to treat certain digital assets as ‘stocks by any other name’

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<div>Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'</div>

<div>Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'</div>

Nasdaq has urged the US Securities and Exchange Commission (SEC) to hold digital assets to the same regulatory standards as securities if they constitute “stocks by any other name,” according to an April 25 comment letter. 

The exchange said the US financial regulator needs to establish a clearer taxonomy for cryptocurrencies, including categorizing a portion of digital assets as “financial securities.” Those tokens, Nasdaq argued, should continue to be regulated “as they are regulated today regardless of tokenized form.”

“Whether it takes the form of a paper share, a digital share, or a token, an instrument’s underlying nature remains the same and it should be traded and regulated in the same ways,” the letter said. 

It also proposed categorizing a portion of cryptocurrencies as “digital asset investment contracts,” to be subject to “light touch regulation” but still overseen by the SEC.

Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'
Nasdaq’s April 25 letter to the SEC. Source: Nasdaq

Related: Certain stablecoins aren’t securities, SEC says in new guidance

Regulatory U-turn

The SEC has dramatically pivoted its stance on cryptocurrency oversight since US President Donald Trump took office in January. 

Under the leadership of former Chair Gary Gensler, the SEC took the position that practically all cryptocurrencies, with the exception of Bitcoin (BTC), represent investment contracts and therefore qualify as securities. 

This stance led the agency to bring upwards of 100 lawsuits against crypto firms for alleged securities law violations.

However, under Trump nominee Paul Atkins, who was sworn in as chair on April 21 after a lengthy Senate confirmation, the SEC has claimed jurisdiction over a narrower segment of cryptocurrencies. 

In February, the agency issued guidance stating that memecoins — if clearly identified as purely speculative assets with no intrinsic value — do not qualify as investment contracts pursuant to US law. 

In April, the SEC said that stablecoins — digital tokens pegged to the US dollar — similarly do not qualify as securities if they are marketed solely as a means of making payments.

Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'
Stablecoin market overview. Source: RWA.xyz

Integrating crypto into TradFi

In its April 21 letter, Nasdaq said existing financial infrastructure “can readily absorb digital assets by establishing the proper taxonomy and calibrating certain rules to reflect what is truly new and novel about digital assets.”

The Depository Trust & Clearing Corporation (DTCC) — a private US securities clearinghouse closely overseen by the SEC — has been laying the foundation for integrating blockchain technology into regulated financial markets.

In March, the DTCC committed to promoting Ethereum’s ERC-3643 standard for permissioned securities tokens.

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

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Crypto firms launch Wall Street-style funds: Finance Redefined

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Crypto firms launch Wall Street-style funds: Finance Redefined

Crypto firms launch Wall Street-style funds: Finance Redefined

Cryptocurrency firms and centralized exchanges are launching more traditional investment offerings, bridging the divide between traditional financial and digital assets.

With investors seeking more flexible product offerings under one platform, the “line is blurring” between traditional finance (TradFi) and the cryptocurrency space, as the two financial paradigms signal a “growing synergy,” according to Gracy Chen, CEO of Bitget, the world’s sixth-largest crypto exchange.

In the wider crypto space, Securitize partnered with Mantle protocol to launch an institutional fund that will generate yield on a basket of diverse cryptocurrencies, similar to how traditional index funds track a mix of stocks.

The developments come after crypto investor sentiment staged a significant recovery, moving from “fear” to “neutral” for the first time since January 2025.

Crypto firms launch Wall Street-style funds: Finance Redefined
Fear & Greed Index chart. Source: CoinMarketCap

Investor sentiment was bolstered after US President Donald Trump said that import tariffs on Chinese goods will “come down substantially,” adopting a softer tone in negotiations for the first time since the reciprocal tariff announcement.

Crypto firms moving into Wall Street territory

Cryptocurrency firms and exchanges are increasingly moving into Wall Street territory, launching more traditional investment offerings and showcasing the increasing connection between crypto and traditional finance (TradFi).

“There’s a growing synergy between traditional financial investments and the emerging crypto space,” according to Gracy Chen, the CEO of Bitget, the world’s sixth-largest crypto exchange.

“Crypto players are now checking out traditional finance as they see the opportunity to bridge it,” Chen told Cointelegraph.

“The lines are blurring. Investors want flexibility, and products that can straddle both worlds are naturally attractive,” Chen said. “Some players see TradFi as a safety net; others, like Bitget, see it as a launchpad for broader adoption.” She added:

“In a volatile market, integration is smarter than isolation.”

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Securitize, Mantle launch institutional crypto fund

Tokenization platform Securitize partnered with decentralized finance (DeFi) protocol Mantle to launch an institutional fund designed to earn yield on a diverse basket of cryptocurrencies, the companies said. 

Similar to how a traditional index fund tracks a mix of stocks, the Mantle Index Four (MI4) Fund aims to offer investors exposure to cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Solana (SOL), as well as stablecoins tracking the US dollar, Securitize said in an April 24 announcement. 

The fund also integrates liquid staking tokens — including Mantle’s mETH, Bybit’s bbSOL, and Ethena’s USDe — in a bid to enhance returns with onchain yield, according to the announcement.

The launch comes as retail and institutions alike increase exposure to cryptocurrencies, particularly Bitcoin, as a hedge amid escalating macroeconomic uncertainty.

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Mantra says CEO has begun the process of burning his 150 million OM tokens

Mantra founder and CEO John Patrick Mullin has started unstaking 150 million of his Mantra (OM) tokens in preparation for sending them to a burn address in an attempt to restore the token’s value by tightening supply. 

Mantra announced on April 21 that the unstaking process had begun, and would be completed by April 29, at which point Mullin’s Mantra (OM) tokens will be sent to the burn address and permanently removed from circulating supply.

Mantra
Source: John Patrick Mullin

Mullin said it was a “first step in rebuilding trust with the community, but far from the last.” 

Mantra said it was also in talks with “key ecosystem partners” about burning a further 150 million OM to bring the total burn amount to 300 million.

With 150 million fewer OM, Mantra’s total supply will decline to 1.67 billion, and its number of staked tokens will drop by over 26% to 421.8 million OM from 571.8 million OM. 

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Symbiotic raises $29 million for staking-based universal coordination layer

Cryptocurrency staking protocol Symbiotic closed a $29 million Series A funding round led by Web3-focused investment firms, including Pantera Capital and Coinbase Ventures, to support the launch of a new economic coordination layer for blockchain security.

The round included more than 100 angel investors, with participation by major industry players Aave, Polygon and StarkWare, the company said in an April 23 announcement shared with Cointelegraph.

The closing of the funding round also marks the launch of Symbiotic’s Universal Staking Framework, which aims to be an economic coordination layer that bolsters blockchain security via staking.

The new staking layer enables the use of any combination of cryptocurrencies to secure networks, including monolithic and modular layer-1 and layer-2 blockchains, the announcement said.

“We’ve created a modular framework that lets protocols evolve security models over time while efficiently coordinating risk,” Misha Putiatin, co-founder of Symbiotic, told Cointelegraph. “This empowers protocols at every stage of their lifecycle to evolve their security models seamlessly without rebuilding infrastructure.”

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SEC delays decision on Polkadot ETF

The US Securities and Exchange Commission (SEC) delayed a decision on whether to approve a proposed exchange-traded fund (ETF) holding Polkadot’s native token, regulatory filings show. 

According to an April 24 filing, the regulator has extended its deadline for a final ruling until June 11, nearly four months after the Nasdaq sought permission to list Grayscale Polkadot Trust on Feb. 24.

Grayscale’s ETF filing adds to a roster of about 70 proposed ETFs awaiting SEC approval, including funds holding altcoins, memecoins and crypto-related financial derivatives, according to Bloomberg Intelligence.  

Asset managers are pitching ETFs for “[e]verything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between,” Bloomberg analyst Eric Balchunas said in an April 21 post on the X platform. Asset manager 21Shares is also awaiting permission to list its own Polkadot ETF.

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.

The Official Trump (TRUMP) token rose over 73% as the week’s biggest gainer, after the president announced an exclusive in-person dinner for the top tokenholders. The Sui (SUI) token rose over 69% as the week’s second-best performing token.

Crypto firms launch Wall Street-style funds: Finance Redefined
Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

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