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Rishi Sunak has seen off a Tory rebellion after his controversial Rwanda bill passed its final hurdle in the Commons.

The bill, which aims to declare that Rwanda is a safe country to deport asylum seekers to, passed by 320 votes to 276 – a majority of 44 for the government.

In total only 11 Tory MPs voted against the bill, including former home secretary Suella Braverman, former immigration minister Robert Jenrick, Sir Bill Cash, Sir Simon Clarke, Sarah Dines, James Duddridge, Mark Francois, Andrea Jenkyns, David Jones and co-chairs of the New Conservatives, Danny Kruger and Miriam Cates.

Politics live: Threat of early election sees rebels help PM’s Rwanda plan clear vote
How did your MP vote on the bill? Find out here

Eighteen Conservative MPs abstained on the bill, including Lee Anderson – who resigned as deputy party chair in protest over the legislation yesterday – former prime minister Theresa May and veteran MP Sir John Hayes.

The bill’s passage came despite the threat of a revolt among Tory MPs, with seven initially saying they would vote against it at third reading, including Ms Braverman and Mr Jenrick.

Mr Sunak had been prepared for a collision with right-wing Tories over the bill, which is aimed at reviving his plan to send asylum seekers to Rwanda if they attempt to come to the UK via small boat crossings in the Channel.

The bill, which is designed to enable parliament to confirm Rwanda is a “safe country”, gives ministers the powers to disregard sections of the Human Rights Act, but does not go as far as allowing them to dismiss the European Convention on Human Rights (ECHR) entirely – a demand of some on the right.

However, speaking to Sky News’ political editor Beth Rigby, Sir Jacob Rees-Mogg, one of the rebels, said he ultimately decided to vote in favour of the bill because it was “better than the status quo”.

“After the difficulties of the last few days, the Tory party has come together,” he added.

“Almost everybody in the Tory party wants people who’ve come here illegally to be removed to Rwanda, that is a point of unity.”

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Rwanda bill ‘complies with international law’

Although the bill has passed its third reading, one Tory source also told Sky News ahead of the vote that the prime minister was “by no means out of the woods”.

After passing the third reading in the Commons, the bill will now go through the same process in the House of Lords, where peers are expected to amend the legislation, which will then be debated and voted on.

A process known as parliamentary “ping pong” is likely to ensure when the legislation bounces between the Commons and Lords – where the government does not have a majority – while being amended.

During the debate on the legislation on Wednesday night, MPs considered a series of amendments designed to toughen up the bill before voting on the bill as a whole.

One, proposed by Mr Jenrick, demanded that rule 39 orders from Strasbourg judges should not be binding for the UK.

In June 2022 it was a rule 39 order – which have been referred to as “pyjama injunctions” for the late time at which they are often issued – that prevented the first flight to Rwanda from taking off.

While MPs overall rejected Mr Jenrick’s amendment by a majority of 469 votes, the rebellion was significant – with 67 MPs voting for it.

Read more:
Migrant crisis: Footage shows boat attempting to cross Channel

Battles on the backbenches – what are the different factions in the Conservative Party?

That included 61 Tory MPs, including the two tellers who verify the count, in an expression of their unhappiness with elements of the bill.

Downing Street had been engaging with MPs with doubts about the legislation after Mr Sunak suffered the resignation of three MPsMr Anderson and Brendan Clarke-Smith, deputy chairs of the Conservative Party, and Jane Stevenson, a parliamentary private secretary in the Department for Business and Trade.

The MPs resigned after they backed amendments put forward by veteran MP Sir Bill Cash and Mr Jenrick on Tuesday night.

A Number 10 spokesman said the passing of the bill “marks a major step in our plan to stop the boats”.

“This is the toughest legislation ever introduced in parliament to tackle illegal migration and will make clear that if you come here illegally you will not be able to stay,” they said.

“It is this government and the Conservative Party who have got boat crossings down by more than a third.

“We have a plan, we have made progress and this landmark legislation will ensure we get flights off to Rwanda, deter people from making perilous journeys across the channel and stop the boats.”

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Crypto’s yield gap with TradFi narrows as staking, RWAs surge

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Crypto’s yield gap with TradFi narrows as staking, RWAs surge

Cryptocurrency-based yield products still lag far behind their traditional finance (TradFi) counterparts, but new blockchain sectors such as liquid staking tokens (LSTs) and real-world assets (RWAs) are steadily closing the gap, according to a new report co-authored by RedStone Oracles, Gauntlet, Stablewatch and the Tokenized Asset Coalition, shared with Cointelegraph.

Only 8% to 11% of cryptocurrencies offer passive yield-generating models, indicating a significant gap compared to 55% to 65% of TradFi assets, roughly a fivefold disparity, the report found. However, stablecoins, RWAs and “blue-chip” yield tokens are rapidly closing decentralized finance’s (DeFi) passive income gap.

Emerging regulations, such as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, passed in July, are helping the industry catch up, resulting in a rising demand for both yield-bearing stablecoins and RWAs, the report says. The GENIUS Act established clear rules for stablecoin collateralization and mandates compliance with Anti-Money Laundering laws.

“As clarity emerges, yield-bearing stablecoins are exploding: market capitalization is up 300% YoY, with new protocols launching monthly to capture the opportunity.”

RWAs, which are tokenized versions of traditional assets such as bonds or funds, are also introducing new sources of passive income as major institutions recognize the efficiency of onchain settlement.

Related: Sonic Labs pivots from speed to survival with business-first strategy

Ether and Solana LSTs gain traction

Blue-chip yield tokens, such as Ether (ETH) LSTs and Solana (SOL) LSTs, are also gaining traction by creating more capital efficiency for cryptocurrency stakers.

Ether Liquid Staking Tokens. Source: Redstone

ETH LSTs rose from six million to 16 million in the two years leading up to November, gaining $34 billion in notional value based on today’s prices.

LSTs, such as Lido’s stETH (STETH), offer crypto stakers an equivalent of the staked token, which can be traded or deployed in other DeFi protocols, thereby creating more capital efficiency.

Related: Bitcoin ETFs roar back with $524M inflows in best day since market crash

Crypto yield-bearing assets poised for “exponential growth” in the next months

Crypto yield-bearing assets are poised for “exponential growth” in the coming months and are set to benefit from the gap between DeFi and TradFi, according to the report, which called it “crypto’s greatest opportunity.”

“As the ‘Crypto-as-infrastructure’ thesis gains traction and onchain finance proves its superior capital efficiency, yield-generating crypto assets are positioned for exponential growth,” as institutional capital will seek more “efficiency,” it said.

Yield-generating tokens, such as Solana LSTs, are also gaining traction among institutions, as they can earn a passive yield of approximately 4% on top of their holdings.

SOL Liquid Staking Tokens. Source: RedStone

Much like Ether, Solana LSTs doubled in supply, from 20 million in January 2024 to about 40 million at the time of writing, with a total of 67% of the Solana token supply now locked in staking smart contracts.

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