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The government is bringing in guidance around donations because the public’s expectations are “so much higher” for Labour than for the Tories, a minister has said.

Peter Kyle, the science secretary, insisted that despite the continued backlash over the freebies row that has engulfed Sir Keir Starmer’s government, “none of the rules had been broken”.

He told Sunday Morning with Trevor Phillips that the reason the government was bringing forward a new set of principles – as announced by the prime minister last week – was because ministers were “trying to meet the expectations that the public have”.

“We had a previous set of leaders in our country, a previous government that was just flouting the rules, breaking the rules and lowering the standards,” he said.

Politics latest: Minister insists ‘we do have money to spend’

“We focussed so much on the rules that what we didn’t do – and we now know we have to do – is take what the public are thinking about what happens within the rules.”

“What we’re trying to do is adapt to what are the expectations – because expectations of this Labour government are so much higher than they were of the previous government, for understandable reasons.”

Challenged on whether the government was in fact “trying to meet the expectations that you yourself set” when criticising the Tories in opposition, Mr Kyle sought to draw a distinction by arguing that the Tories had broken the rules by not declaring some donations.

Sir Keir announced a new set of principles for political donations following weeks of criticism after he and his top team accepted tens of thousands of pounds worth of freebies from wealthy donors.

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Starmer: It’s ‘right’ to repay gifts

While all the gifts had been declared, opposition parties have accused Labour of hypocrisy, given they vowed to “clean up politics” if they entered government.

Alongside the new set of principles, the prime minister also confirmed he had paid back more than £6,000 worth of gifts and hospitality received since taking office – including the cost of six Taylor Swift tickets, four to the races, and a clothing rental agreement with a high-end designer favoured by his wife, Lady Victoria Starmer.

Read more:
PM ‘should hold COBRA-style meeting to decide new freebies rules

Angela Rayner’s Ibiza DJ booth rave was £836 freebie

His decision to cover the cost of some gifts and not others – the prime minister also received work clothing donations worth £16,200 – has prompted a debate over what donations it will now be considered acceptable to receive.

Asked whether “accepting free football tickets or club nights in Ibiza” was “on or off” under the new guidance, Mr Kyle replied: Everything is declared. We will stick to the rules.

“We’re updating the rules so that it reflects the expectations that we believe the public has of us post election.”

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US lawmakers propose tax break for small stablecoin payments, staking rewards

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US lawmakers propose tax break for small stablecoin payments, staking rewards

US lawmakers have introduced a discussion draft that would ease the tax burden on everyday crypto users by exempting small stablecoin transactions from capital gains taxes and offering a new deferral option for staking and mining rewards.

The proposal, introduced by Representatives Max Miller of Ohio and Steven Horsford of Nevada, seeks to amend the Internal Revenue Code to reflect the growing use of digital assets in payments. The draft is set “to eliminate low-value gain recognition arising from routine consumer payment use of regulated payment stablecoins,” per the draft.

Under the draft, users would not be required to recognize gains or losses on stablecoin transactions of up to $200, provided the asset is issued by a permitted issuer under the GENIUS Act, pegged to the US dollar and maintains a tight trading range around $1.

The bill includes safeguards to prevent abuse. The exemption would not apply if a stablecoin trades outside a narrow price band, and brokers or dealers would be excluded from the benefit. Treasury would also retain authority to issue anti-abuse rules and reporting requirements.

Draft bill explains the reasoning behind tax breaks. Source: House

Related: Crypto Biz: Bank stablecoins get a rulebook; Bitcoin gets a land grab

US bill defers taxes on crypto staking rewards

Beyond payments, the proposal addresses long-standing concerns around “phantom income” from staking and mining. Taxpayers would be allowed to elect to defer income recognition on staking or mining rewards for up to five years, rather than being taxed immediately upon receipt.

“This provision is intended to reflect a necessary compromise between immediate taxation upon dominion & control and full deferral until disposition,” the draft said.

The draft also extends existing securities lending tax treatment to certain digital asset lending arrangements, applies wash sale rules to actively traded crypto assets, and allows traders and dealers to elect mark-to-market accounting for digital assets.

Related: Galaxy predicts stablecoins will overtake ACH transaction volume in 2026

Crypto groups urge Senate to rethink stablecoin rewards ban

Last week, the Blockchain Association sent a letter to the US Senate Banking Committee, signed by more than 125 crypto companies and industry groups, opposing efforts to extend restrictions on stablecoin rewards to third-party platforms.