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It wasn’t yet official, but Sir Keir Starmer was straight out of the blocks on Wednesday morning to congratulate Donald Trump on his imminent victory – as America reeled from an election that turned from being too close to call into an emphatic, definitive and quick win.

The president-elect took the Electoral College, the popular vote, and the Senate.

The victory is hugely consequential, not just for a divided America that now has at its helm a president who ran a campaign that played on fear, economic and social insecurity and grievance, but for the UK and Europe too.

The US election has chosen a strongman leader for uncertain times and he enters the White House with a huge mandate. How he chooses to wield that power matters to us all.

For the Labour government, it will be a more trying diplomatic test than would have befallen a Conservative one.

Follow live updates – Trump wins US election

As Donald Trump noted when he and Sir Keir dined at Trump Tower in September ahead of the election, he and Starmer are not natural bedfellows.

More on Donald Trump

“You’re a liberal so we won’t always agree,” he reportedly told the UK prime minister over dinner. “But we can work together.”

Sir Keir, a former human rights lawyer and a part of the sister party to the Democrats, and Donald Trump, a brash, deal-making billionaire businessman, are not an obvious match.

For Donald Trump, relationships matter. He hit it off with Boris Johnson but never really rubbed along with Theresa May.

Sir Keir’s approach will be to keep calm and carry on. I’m told the PM is of the view that “it is not about what Trump says but what he does”.

He is obviously not the preferred choice of the Labour leadership, but those in Number 10 are pragmatic and have been preparing for the outcome for some months.

“For us, there will always be areas of common interest than transcend party politics, as does the special relationship,” one senior figure said.

“Our approach is that it’s ultimately for the American people, and they have clearly chosen who they want to be president – and our responsibility is to make the relationship work in the UK national interest.

“That’s why the PM took time to have dinner with President Trump in September – and that was a very successful evening. It’s fortuitous to have that time so we are not starting from scratch.”

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Starmer congratulates Trump

There have already been moments of possible tension that the prime minister has brushed off as inconsequential, aware that it is unwise to poke the bear.

When, on our way to the Commonwealth summit in Samoa, Trump’s election team filed a complaint against Labour, accusing it of “blatant foreign interference” in the US election in aid of the Harris campaign.

This came after media reports about contact between Number 10 operatives and the Harris team and apparent volunteering efforts.

Sir Keir calmly brushed aside concerns and refused to rise to the bait – despite some of his most senior staff being personally targeted in the Trump complaint.

Meanwhile, David Lammy, the foreign secretary, has spent a good portion of his time in recent months with Republicans – with his supporters insisting the ground work has “paid off”.

“They know him now and he has good relations with JD Vance,” one supporter said.

I’m also told that past sharp criticisms of President Trump by Mr Lammy – he once called Trump a “neo-Nazi sociopath” – are long forgotten.

“He won’t hold a grudge if you treat him with respect when he’s in office,” insisted one insider.

The coming months will see whether that proves true, but government insiders point out to me that the reason Sir Keir took Mr Lammy to the Trump dinner in New York was to test the water.

“It was a successful evening. If there had been an issue, President Trump would have said something,” one said.

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Will Lammy apologise for Trump comments?

Sir Keir ever pragmatic, the mood more widely in government was pretty flat on Wednesday, as London woke up to the Trump win.

Many Labour staffers had gone over to support the Harris campaign, other members of the Starmer team had attended the Democratic convention in a time-honoured tradition of these two sister parties.

This was a government that had wanted a Democrat win.

As one insider said to me on Wednesday morning: “I hoped right up to the last moment that he wouldn’t win. But he has and here we are.”

There is plenty of anxiety in the UK about what Trump 2.0 might mean.

For starters, he has threatened across-the-board trade tariffs on all trading partners of 10% to 20%, while floating special treatment for the US’s chief rival China, with tariffs of up to 60%.

Blanket tariffs would hit billions of pounds of UK automotive, pharmaceutical and liquor exports.

Read analysis:
Trump 2.0: Power beyond his wildest imagination
Harris’ team will be searching for answers
What Trump’s win means for the UK

One senior government figure told me they have been wargaming the scenarios but did not know how the coming months would play out, noting the political win for Trump at home could make him bolder still.

“We are very well prepared, but you have to accept unpredictability is a key feature of Trump,” the senior figure said.

“The UK does not have a trade deficit on goods with the US, so we might not be top of his hit list, but a clean sweep like this [politically] probably makes him feel he has been totally validated.”

Those scenarios range from full-blown trade wars to more mildly protectionist measures, which the UK has already lived with under the Biden Administration’s Inflation Reduction Act – which was designed to drive businesses to the US through hundreds of billions of tax incentives.

“What he says in the heat of the campaign and what actually happens might differ. We have a window of opportunity during the transition [Trump will be inaugurated on 20 January] to argue that tariffs will have a huge impact on the US too,” the senior figure said.

“It’s hard to say what it’s going to mean for us now. There will be trade implications, but it’s not clear whether they will be flat tariffs that spark a trade war with China in which we all feel the pain or mildly protectionist stuff, which the US has been doing for years.

“In the nightmare trade scenario of huge tariffs… if this happens, this is going to make Brexit feel like a papercut.”

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For the UK, outside of the EU and dealing with China and the US, tariffs could be particularly acute and cause difficulties domestically.

As a big trading nation, tariffs would have big inflationary effects on goods.

“It would have a big impact on how we have to face China and Europe and creates retaliatory trade wars,” one person familiar with the scenario planning said.

“It forces us to choose. Do we face more to America, do we face more to China?

“We are exposed as a trading nation as we are relatively little between the bloc of the EU, China and the US. So we will be disproportionately affected and we don’t have big friends to buddy up to, so we will be squeezed.”

It’s also not clear how flat tariffs tie into the much-lauded post-Brexit trade deal that Trump was once keen on but President Biden was not.

The Labour government for now are unclear how this might be revisited, or whether they want it to be, in the light of both Trump’s protectionism and the Labour red lines on opening up the NHS to private pharma or agriculture to imports of genetically modified products.

The prospect of punitive tariffs to force the UK to the table is the very opposite of what the government wants.

However, could there be some middle ground?

One government official argues there could be scope for cooperation on security or technology that is different to a full-fat trade deal.

There is some hope that the deal maker Trump might be open to such tie-ups.

For broader foreign policy, Trump in the White House is a significant change and the UK government is bracing for his different approach.

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Donald Trump’s victory in numbers

It is, insiders admit, hugely uncertain.

President Trump – in his focus in this election on the domestic US economy and borders – has not clearly spelt out how he intends to interact with the wider world on matters of Ukraine, the Middle East or China.

What is clear is that in Trump’s first term of power, he was often abrasive with old allies – he lambasted European friends for weak defence spending and even floated the prospect of leaving NATO.

Some NATO members now fear his return will lead to reduced US commitment to European security and an end to military support in Ukraine.

He has promised to end the war if he was returned to the White House, but has not spelt out exactly how he intends to do that.

This is true too of the Israel-Hamas war in Gaza and the Israel-Hezbollah war in Lebanon.

Trump has promised to bring “peace” to the Middle East, but has not said how. With his tough stance against Iran, Trump could end up offering more military US support for Israel. It is simply, for now, unclear.

What the UK government will now want to do in this transition time is to gain an audience with Trump and his team to press the UK and European interests.

However, there is an acknowledgement too within the government that it is now even more pressing for European allies to increase defence spending in the wake of a Trump win.

“Our approach will be to look at how he acts, rather than what he says,” one UK official said.

“He [Trump] has had an audience with Zelenskyy, who again has reiterated his ‘good discussions’ with Trump on the victory plan in September. But we agree with him, that Europe does need to do more [in spending].”

There is also a domestic question for Sir Keir in all of this.

Will the victory of Trump’s brand of populism and grievance politics fan those flames here in the UK?

Labour are all too alive to the threat of Reform, which won five seats, came second in dozens more and picked up 14% of the votes in the July election.

Sir Keir’s government knows it faces backlash should it fail to deliver on promises made.

There will also be obvious anxiety in government that Trump’s election in the US feeds into the global currents moving towards the populist right in Europe too, with Marine Le Pen now the bookmakers’ favourite to become the next president of France in 2027.

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Highlights from Trump’s speech

President Trump’s priorities will undoubtedly be domestic, as he told the American people in his victory speech he would keep the promises he made to seal the US-Mexican border, deport millions of undocumented immigrants and fix the US economy.

But his pledges to the American people touch on our lives too.

His promise of sweeping tariffs to restore the US’s manufacturing base could hit our economy, while his pledge to retreat from America’s role as global policeman to a more isolationist approach could affect Europe’s security too.

It’s the biggest comeback in political history – and it takes not just America into the unknown, but her old allies too.

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New York district gets interim US Attorney as ex-SafeMoon CEO trial kicks off

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New York district gets interim US Attorney as ex-SafeMoon CEO trial kicks off

New York district gets interim US Attorney as ex-SafeMoon CEO trial kicks off

Acting US Attorney for the Eastern District of New York (EDNY) John Durham has departed as President Donald Trump’s pick takes control of the office.

In a May 5 notice, the US Attorney’s Office for EDNY said Joseph Nocella will serve as interim US Attorney for the region for 120 days or until a Senate-confirmed nominee assumes the role. Nocella’s appointment came as jury selection began in the criminal trial of Braden John Karony, the former CEO of crypto firm SafeMoon.

It’s unclear how the advancement of Nocella, appointed by US President Donald Trump this month, could affect prosecutors’ case against Karony, who faces charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. Nocella said he intended to help prosecute “narcotics-traffickers, gang members, terrorists, human-traffickers and other criminals.”

The former SafeMoon CEO asked the court in February to consider pushing back the start of the trial based on “significant changes” Trump had proposed affecting US securities laws, potentially impacting his criminal case.

Related: What do crypto users want to happen to Alex Mashinsky?

Though not as well known for criminal cases involving high-profile figures in the crypto industry, the Eastern District of New York has been responsible for overseeing cases against individuals tied to digital assets, including a Securities and Exchange Commission (SEC) complaint against Hex founder Richard Heart and fraudsters.

Its neighboring district, the Southern District of New York, will oversee the sentencing of former Celsius CEO Alex Mashinsky on May 8. Jay Clayton, a Wall Street insider and the former chair of the SEC, became the interim US Attorney for the district in April.

Criminal trial to start on May 6

SafeMoon’s Karony, Kyle Nagy, and Thomas Smith were charged in November 2023 for “diverted and misappropriated millions of dollars’ worth” of the platform’s SFM token between 2021 and 2022. Karony has pleaded not guilty to all charges and has been free on a $3 million bond since February 2024.

In a May 5 filing, Karony agreed to have jury selection for his trial proceed under US Magistrate Judge James Cho. District Judge Eric Komitee is expected to oversee the trial starting on May 6.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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Trump’s crypto dealings face scrutiny as House Republicans unveil digital asset bill

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Trump’s crypto dealings face scrutiny as House Republicans unveil digital asset bill

Trump’s crypto dealings face scrutiny as House Republicans unveil digital asset bill

US President Donald Trump’s crypto businesses are drawing increased scrutiny on Capitol Hill and beginning to influence the progress of US digital asset legislation. As Republican lawmakers in the US House of Representatives unveiled their draft of a digital asset market structure bill on May 5, Democrats prepared for a united response to Donald Trump’s deepening connections with the industry.

Speaking to Cointelegraph on May 5, a Democratic staffer with knowledge of the matter said that House Financial Services Committee Ranking Member Maxine Waters planned to lead some members of her party out of a Republican-led hearing discussing digital assets. The May 6 hearing, entitled “American Innovation and the Future of Digital Assets” and led by Committee Chair French Hill, could address draft legislation proposed by Republican lawmakers to establish a crypto market regulatory structure.

In a May 5 statement, Rep. Hill and three top Republicans unveiled the draft bill, which could clarify the treatment of digital assets by the US’s financial regulators: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Hill and others echoed some of Trump’s talking points on crypto — e.g, making the US a “crypto capital of the world” — suggesting deference to the president’s previously announced policies.

The draft bill included a provision requiring the SEC and CFTC to issue joint rules defining digital commodities. According to the text, transactions involving digital commodities “shall be deemed not to be an offer or sale of an investment contract” as long as the purchaser did not have “an ownership interest or other interest in the revenues, profits, or assets.”

According to the Democratic staffer, rules required all members of the House Financial Services Committee to agree to move forward with the digital asset hearing, suggesting that Waters intended to block the Republican-controlled event and conduct a shadow hearing to explore Trump’s and his family’s ties to the crypto industry. At least nine Democrats have reportedly considered a similar move to oppose a proposed stablecoin bill in the Senate.

Calls for impeachment, criticism from both sides

Some members of Congress have already called for Trump’s impeachment after he offered the opportunity for some of his top memecoin holders to tour the White House and attend a private dinner. In addition to the memecoin, the president’s family has backed the firm World Liberty Financial, which recently launched its own stablecoin, and an Abu Dhabi-based investment firm used the USD1 stablecoin to settle a $2 billion investment in Binance.

Related: US Senator calls for Trump impeachment, cites memecoin dinner

Waters, according to the staffer, requested that Hill and Republicans amend any proposed legislation to explicitly prevent potential conflicts of interest in which Trump could personally enrich himself through crypto ventures. Cointelegraph reached out to Hill’s office but did not receive a response at the time of publication. The Arkansas lawmaker reportedly said in March that the Trump family’s involvement in the crypto industry makes related legislation “more complicated.”

Republican lawmakers in the United States currently have control of the House, Senate, and presidency. At least two senators supportive of Trump have criticized his memecoin dinner, hinting that the president was selling access to his office. It’s unclear at the time of publication who among the memecoin holders could attend the May 22 dinner in person.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

This is a developing story, and further information will be added as it becomes available.

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VanEck files for BNB ETF, first in US

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VanEck files for BNB ETF, first in US

VanEck files for BNB ETF, first in US

Asset manager VanEck has asked US regulators for permission to list an exchange-traded fund (ETF) holding BNB, the native token of Binance’s BNB Chain, regulatory filings show. 

The ETF is designed to accumulate spot BNB (BNB) tokens and “may, from time to time, stake a portion of the [fund’s] assets through one or more trusted staking providers,” according to the ETF’s S-1 prospectus. The filing marks the first time an asset manager has filed for a BNB ETF in the United States.

The BNB token has a market capitalization of roughly $84 billion, according to data from CoinMarketCap. As of May 5, BNB stakers earn a yield of approximately 2.5%, according to data from Stakingrewards.com

Binance’s BNB Chain is among the most popular smart contract networks, with a total value locked (TVL) of nearly $6 billion, according to data from DefiLlama. 

VanEck files for BNB ETF, first in US
BNB Chain is among the most popular blockchain networks. Source: DeFILlama

Related: Binance co-founder CZ proposes Bitcoin, BNB for Kyrgyzstan reserves

Bitcoin’s “spillover” effect?

The filing comes days after Binance co-founder Changpeng “CZ” Zhao reportedly said he expects the popularity of Bitcoin (BTC) ETFs to eventually “spill over” into altcoins.

“This cycle so far has been the ETFs. And it’s almost all Bitcoin. Ether hasn’t had as much success but Bitcoin success will spill over to the others eventually,” CZ reportedly said during the Token2049 conference in Dubai. 

Spot Bitcoin ETFs attracted net inflows of more than $40 billion since launching in January of 2024, according to data from Farside Investors.

Cryptocurrencies, Bitcoin Price, Investments, Markets, United States, Ethereum ETF, Bitcoin ETF, ETF
Cumulative inflows into spot BTC ETFs. Source: Farside Investors

VanEck’s filing is the newest in a flurry of filings seeking to list ETFs holding altcoins. 

The US Securities and Exchange Commission (SEC) has acknowledged dozens of cryptocurrency ETF proposals since US President Donald Trump took office on Jan. 20. 

They include plans for ETFs holding native layer-1 tokens such as Solana (SOL) as well as memecoins such as Dogecoin (DOGE).

VanEck has filed to list other cryptocurrency ETFs over the past few months, including funds holding Solana and Avalanche (AVAX).

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

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