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The Scottish government has survived a vote of no confidence at Holyrood.

Scottish Labour pressed ahead with its motion despite Humza Yousaf announcing earlier this week his intention to stand down as SNP leader and first minister.

It failed by 58 votes to 70.

The Scottish Greens voted against the motion, with party co-leader Patrick Harvie branding it “chaos for the sake of chaos”.

If it had passed, all ministers in the minority SNP government would have been forced to quit.

Opening the debate, Scottish Labour leader Anas Sarwar thanked Mr Yousaf for his service and wished him well, but said Scotland was “crying out for change” from the UK Conservative government and the SNP Scottish government.

He said the country needed “credible and effective leadership” to deal with “twin crises” in the economy and NHS.

More on Humza Yousaf

Mr Sarwar added: “I have no confidence in the SNP’s ability to deliver that and that is why I am bringing this motion to parliament today.”

The outgoing first minister defended his government’s record, adding that in the 13 months he has spent in charge he had not “heard a single positive idea” from Scottish Labour.

Scottish Labour leader Anas Sarwar during a debate on a motion of no confidence in the Scottish Government, at the Scottish Parliament in Holyrood, Edinburgh. Picture date: Wednesday May 1, 2024.
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Anas Sarwar thanked Mr Yousaf for his service, but said Scotland was ‘crying out for change’. Pic: PA

Mr Yousaf added: “What I have heard is the deafening sound of principle after principle being thrown out of Anas Sarwar’s window.

“U-turning on the two-child cap, U-turning on the devolution of employment law, U-turning on the devolution of drug law, U-turning on his support for Waspi women.”

Mr Yousaf said pro-UK parties, in their “cosy Westminster alliance”, would be “terrified” of a vote of no confidence.

He added: “As I have found out only too well in the last few days, politics is definitely about the choices we choose to make.

“As a government, I am exceptionally proud of our choices.”

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What comes next for the SNP?

The debate and vote has come following the breakdown of the Bute House Agreement.

Within hours of the powersharing deal with the Scottish Greens coming to an end last week, Scottish Tory leader Douglas Ross announced he would be bringing a motion of no confidence in the first minister.

Angry over the way the party was dumped from government, the Scottish Greens announced its MSPs would be backing the motion.

Scottish Labour then announced it was planning a motion of no confidence in the Scottish government.

Mr Yousaf reached out to his political opponents in an effort to stem the uprising but conceded that he had “underestimated the level of hurt and upset” his actions had caused Scottish Green colleagues.

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Speaking to Sky News earlier on Wednesday, Mr Yousaf said: “I will certainly be regretting the way it ended.”

The Scottish Tories dropped their motion following Mr Yousaf’s resignation, but Scottish Labour pressed on as the party believes the decision on the next first minister should be put to the public.

Mr Yousaf intends to remain in post until his successor is announced.

Read more:
Who could replace Humza Yousaf?
What happens now following his resignation
SNP stands at a crossroads – what direction will party take?

Former deputy first minister John Swinney and ex-finance secretary Kate Forbes have emerged as potential frontrunners to throw their hat into the ring.

Kate Forbes speaks to the media at the Scottish Parliament in Edinburgh. The SNP is beginning the search for a new leader after a day of drama in Scottish politics saw Humza Yousaf announce his resignation as the country's First Minister. Picture date: Tuesday April 30, 2024.
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Kate Forbes speaking to journalists earlier this week. Pic: PA

Mr Sarwar pointed to reports that Ms Forbes could struggle to appoint ministers and described Mr Swinney as “the finance secretary that broke the public finances and the worst education secretary in the history of the Scottish parliament”.

Mr Ross, whose party threw its support behind the Scottish Labour motion, was forced to apologise to Mr Swinney after referring to him as “not so honest John” in the Holyrood chamber.

John Swinney at the Scottish Parliament in Edinburgh. The SNP is beginning the search for a new leader after a day of drama in Scottish politics saw Humza Yousaf announce his resignation as the country's First Minister. Picture date: Tuesday April 30, 2024.
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John Swinney at Holyrood on Tuesday. Pic: PA

Mr Ross was first reprimanded for referring to Mr Swinney as “honest John”, but when presiding officer Alison Johnstone reminded him not to use nicknames, he said: “Oh sorry, I thought it was on accuracy because it would be not so honest John with some of the things we’ve heard recently.”

Scottish Conservative party leader Douglas Ross being interviewed at the Scottish Parliament in Edinburgh. The SNP is beginning the search for a new leader after a day of drama in Scottish politics saw Humza Yousaf announce his resignation as the country's First Minister. Picture date: Tuesday April 30, 2024.
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Douglas Ross (pictured) was first reprimanded for referring to Mr Swinney as ‘honest John’. Pic: PA

Apologising, Mr Ross said: “I will apologise. I’m very sorry for any hurt caused.”

The Scottish Tory leader added: “Whether we have a bitter battle or a cosy coronation to elect the next leader of the SNP, they will continue campaigning for independence and the Scottish people will continue to be failed by them.”

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Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’

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Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’

Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’

David Sacks, US President Donald Trump’s top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate with bipartisan backing.

“We have every expectation now that it’s going to pass,” Sacks told CNBC on May 21, following a key procedural vote that saw 15 Democrats join Republicans to clear the filibuster threshold.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets.

Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules.

“We already have over $200 billion in stablecoins — it’s just unregulated,” he added. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.”

Related: GENIUS Act ‘legitimizes’ stablecoins for global institutional adoption

Stablecoin bill moves forward despite Trump controversy

The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s crypto dealings. Critics have raised concerns that the administration benefits from the legislation, given its ties to World Liberty Financial, a crypto firm backed by Trump family members that recently launched a stablecoin, USD1.

Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’
The US Senate voted 66–32 to advance debate on the GENIUS stablecoin bill. Source: US Senate

The token is backed by US Treasurys and dollar deposits and has received a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance.

Sacks, who disclosed the sale of $200 million in crypto-related holdings before joining the White House, declined to comment on whether the president or his family may financially gain from the bill’s passage.

Despite momentum, final passage is not guaranteed. Senator Josh Hawley has added a controversial provision to the bill that would cap credit card late fees, a move that could cost the legislation support from financial industry allies.

Related: Hong Kong passes stablecoin bill, set to open licensing by year-end

Banks panicking over yield-bearing stablecoins

In a May 21 post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the US banking industry is “panicking” over the rise of yield-bearing stablecoins, which threaten their profit model.

Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’
An excerpt of Campbell’s X post. Source: Austin Campbell

Campbell criticized the banking lobby for pressuring lawmakers to defend their interests and block competition from interest-paying stablecoins.

He argued that banks rely on fractional reserve practices to profit while offering low returns to depositors, and fear stablecoins may expose and disrupt that system.

As reported by Cointelegraph, the US Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets.

According to a May 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the total stablecoin market.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story 

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Chemical castration for sex offenders under new plans to reduce prison population

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Chemical castration for sex offenders under new plans to reduce prison population

Sex offenders could face chemical castration and thousands of offenders will be released after serving a third of their jail term, under plans proposed in a sentencing policy review set to be accepted by ministers.

The independent review, led by the former justice secretary David Gauke, was commissioned by the government amid an overcrowding crisis in prisons in England and Wales.

It has made a series of recommendations with the aim of reducing the prison population by 9,800 people by 2028.

The key proposal, which it is understood the government will implement, is a “progression model” – which would see offenders who behave well in jail only serve a third of their term in custody, before being released.

The measure will apply to people serving standard determinate sentences, which is the most common type of jail term, being served by the majority of offenders.

It will be based on sentence length, rather than offence type. That means sex offenders and domestic abusers serving sentences of under four years, could all be eligible for early release.

The policy will mean inmates serve only a third of their sentence in prison, a third on licence in the community, with the remaining portion under no probation supervision at all.

If the offender committed further offences in the “at risk” – or final – stages of their sentence, once out of prison, they would be sent back to jail to serve the remainder of the original sentence, plus time inside jail for the new offence.

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Is government ‘prepared to be unpopular’ over prisons?

Chemical castration trial could be extended

The government will also further the use of medication to suppress the sexual drive of sex offenders, which is currently being piloted in southwest England.

The review recommended that chemical castration “may assist in management of suitable sex offenders both in prison and in the community”.

Ministers are to announce plans for a nationwide rollout, and will first expand the use of the medication to 20 prisons across England.

The justice secretary is also considering whether to make castration mandatory. It’s currently voluntary.

Mr Gauke, the chair of the independent sentencing review, told Sky News that “drugs that reduce sexual desire” will not be “appropriate for every sexual offender”.

“I’m not going to claim it’s the answer for everything,” the former justice secretary said. “This is about reducing the risk of re-offending in future.

“There are some sex offenders who want to reduce their desires and if we can explore this, I think that is something that’s worthwhile.”

However, Mr Gauke stressed that the government needs to focus on “reducing crime overall”.

TUESDAY MAY 14 File photo dated 29/04/13 of a general view of a Prison. Dangerous criminals including a domestic abuser who posed a risk to children have been freed from jail early as part of a Government bid to cut overcrowding, a watchdog has warned. Issue date: Tuesday May 14, 2024.
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Prisons in England and Wales are facing an overcrowding crisis. File pic: PA

Domestic abuse commissioner criticises plans

Under his recommendations, violent offenders who are serving sentences of four years or more could be released on licence after spending half of their sentence behind bars. This could be extended if they do not comply with prison rules. These prisoners would then be supervised in the community until 80% of their sentence.

In response to the review, the police have warned: “Out of prison should not mean out of control.”

“If we are going to have fewer people in prison, we need to ensure that we collectively have the resources and powers to manage the risk offenders pose outside of prison,” said Chief Constable Sacha Hatchett at the National Police Chiefs Council.

The domestic abuse commissioner for England and Wales, Nicole Jacobs, said adopting the measures would amount to “watering down” the criminal justice system.

“By adopting these measures the government will be sending a clear message to domestic abusers that they can now offend with little consequence,” she said.

In a set of proposals considered to be the biggest overhaul of sentencing power laws since the 1990s, judges could be given more flexibility to punish lower level offenders with bans on football or driving.

The review has also recommended that short sentences should only be used in “exceptional circumstances”, suggesting they are “associated with higher proven reoffending” and “fall short in providing meaningful rehabilitation to offenders”.

The Howard League for Penal Reform has welcomed the proposals as a “good start”.

“This is a vital review that makes the case for change by focusing on the evidence on what will reduce reoffending and prevent more people becoming victims of crime,” said chief executive Andrea Coomber.

David Gauke’s review has called on the government to “invest” in a probation service that is “under significant strain”, as its proposals recommend a larger number of offenders should be punished and supervised in the community.

“Tagging can be a useful way to monitor offenders and identify escalating risks,” it said.

The government is set to invest a further £700m in the probation service and introduce a mass expansion of tagging technology, where tens of thousands of criminals will be monitored at any one time, creating a “prison outside of a prison”, with the help of US tech companies.

‘Overriding concerns’

The Victims Commissioner, Baroness Newlove, has expressed an “overriding concern” about the ability of an “already stretched probation service” to “withstand the additional pressure” of managing a larger number of people outside of prison.

The policy review also makes recommendations around offenders that are recalled to prison after breaching their licence conditions.

Currently, around 15% of those behind bars are there because they have been recalled. Mostly, it’s for breaching of licence conditions, rather than further offences.

The review recommends a “tighter threshold” for recall so that it is “only used to address consistent non-compliance”, with licence conditions – which can include missing a probation appointment.

Read more:
Minister refuses to rule out ‘supermax’ prisons
Victim watchdog questions offenders’ early release

Last week the government announced plans that will see offenders serving one to four-year sentences held for a fixed 28-day period if they are returned to jail.

The review suggests increasing that limit to 56 days, in order to “allow sufficient time for planning around appropriate conditions for safe re-release into community supervision”.

The government is expected to accept the review’s key measures, and implement them with a sentencing bill before parliament.

The plans will likely require legislation and only be before the courts by the spring of 2026.

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Dubai regulator clarifies real-world asset tokenization rules: Lawyer

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Dubai regulator clarifies real-world asset tokenization rules: Lawyer

Dubai regulator clarifies real-world asset tokenization rules: Lawyer

Newly updated guidelines from Dubai’s crypto regulator include provisions on real-world asset (RWA) tokenization and clarify rules for issuers. 

On May 19, Dubai’s Virtual Asset Regulatory Authority (VARA) released its updated Rulebook for virtual asset service providers (VASPs) operating in the region. The regulator gave market participants until June 19 to comply with the new rules. 

The regulator previously told Cointelegraph that it had enhanced supervisory mechanisms and brought consistency across activity-based rules. One of the more prominent changes includes regulatory clarity on RWA tokens. 

Irina Heaver, partner at the United Arab Emirates-based law firm NeosLegal, told Cointelegraph that the updated rules clarify RWA issuance and distribution. 

“Issuing real-world asset tokens and listing them on secondary markets is no longer theoretical,” Heaver told Cointelegraph. “It’s now a regulatory reality in Dubai and the broader UAE.”

A “viable” path to realize RWA hype

Heaver compared RWAs to security token offerings (STOs), an earlier attempt from the crypto space to tokenize securities like stocks, bonds and real estate investment trusts. However, the UAE crypto lawyer said that STOs “died a peaceful death in 2018 to 2019.” 

The lawyer told Cointelegraph STOs did not work out because of the lack of regulatory clarity, viable secondary market trading venues, institutional investor appetite and liquidity. 

Still, the situation is different for RWAs. Heaver told Cointelegraph that RWAs are the next foundational layer for institutional adoption of blockchain and virtual assets. Heaver said that VARA’s new rules already cover them as Asset-Referenced Virtual Assets (ARVA) tokens. She said: 

“VARA’s newly updated Virtual Asset Issuance Rulebook (May 2025) addresses these failures head-on. Regulated exchanges and broker-dealers in Dubai are now authorized to distribute and list ARVA tokens.”

The lawyer said this solves an issue in jurisdictions like Switzerland, where token issuance is possible, but listing and secondary trading remain unregulated. 

Related: Dubai gov’t agencies to link real estate registry with property tokenization

Lawyer shares requirements for RWA issuers

Heaver said ARVA tokens are defined under Dubai law as representing direct or indirect ownership of real-world assets, granting entitlement to receive or share income and purporting to maintain a stable value by reference to real-world assets or income. 

ARVA tokens are also backed or collateralised by such real-world assets or constitute a derivative, wrapped, duplicated, or fractionalised version of another ARVA. 

The lawyer said issuers must meet specific requirements, including a Category 1 Virtual Asset Issuance license, a comprehensive white paper and a risk disclosure statement. 

In addition, issuers must have a paid-up capital of 1.5 million UAE dirhams (about $408,000) or 2% of reserve assets held. The issuers are also subjected to monthly independent audit obligations and must adhere to ongoing supervisory oversight. 

“VARA is providing regulatory clarity, and it’s giving the industry a viable, enforceable path to turn the hype of RWA tokenization into reality,” Heaver told Cointelegraph. “This matters because it marks a shift, from theory to execution, from fiction to framework.”

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

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