What are the rules around political donations, do they change for an election and can parties give back money?

Published

1 year ago

March 14, 2024

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It’s an election year – and that means political donations have ramped up.

And this has been compounded by the alleged comments of Frank Hester, who is reported to have said Labour MP Diane Abbott made him “want to hate all black women”, after giving £10m to the Conservatives.

But what exactly are the rules on donations? Do they change for elections? Who gets the most money? Why do people donate? And can parties give funds back?

Here we explain:

What are the rules on donations?

Politics and money is a rabbit hole that Lewis Carroll would be jealous of, and the UK’s system is no different.

One of the most important things to note is that the figures are on a much smaller scale to those in the US – in the tens of millions rather than billions.

One key distinction is that donations to MPs are different to political party donations.

MPs have to declare all their interests on a public register, which can be easily searched using the Sky News Westminster Accounts tool.

This is how we know that Frank Hester’s The Phoenix Partnership donated a £15,900 helicopter flight to Rishi Sunak late last year.

His company gave £5m, and he gave £5m personally to the Conservative Party itself.

The rules for these donations require all contributions over £11,180 to be declared. This was recently increased from a threshold of £7,500.

Money donated to political parties in this fashion goes into their accounts but, according to Professor Justin Fisher, an expert in political finance at Brunel University, it does not need to be “ring-fenced”.

This is why there is no way to see what the money donated by Mr Hester and his company was spent on.

The body responsible for regulating and setting standards for donations and party finances is the Electoral Commission.

Are there different rules for elections?

In short – yes, many different restrictions.

The aforementioned increase in the floor for the declaration of donations was done as part of measures to update financial restrictions that had laid untouched for two decades.

The spending limit for parties during elections also increased. For a party contesting all 650 UK seats it went from around £18m to just over £35m.

However, as no party contests every seat, the effective limit is just over £34m.

According to the Electoral Commission, this applies to spending on certain activities in the 365 days before the election.

Confusingly, it is impossible to know the start date of this period, as the government can call an election whenever it wants, so in November 2023 the Electoral Commission encouraged parties to “behave as if you are in a regulated period from now onwards”.

Other changes included how often parties have to report their donations.

In normal times, figures are published quarterly. After an election is called and parliament is dissolved, publication takes place every week.

There are also restrictions on how much money a prospective MP can spend in an election period.

Each constituency has a limit based on the number of people who live there.

And those hoping to get elected have to declare all their spending, as well as any donation the candidate received over £50.

Who gives the most money – and why?

The biggest donors to political parties can be easily identified through the Sky News Westminster Accounts interface.

It is dominated by individuals, unions, and just a few companies.

At the top of the list sits Lord David Sainsbury, the supermarket heir, who has given more than £13m in donations since the last election – including £5.1m to Labour and £8m to the Liberal Democrats.

He is not to be confused with his cousin, the late Lord John Sainsbury, who gave £10.2m to the Conservatives in the same period.

Next up is the union Unite, which has given £10.7m to Labour, and hundreds of thousands of pounds to Labour MPs.

The GMB union and Unison have both given around £6m to Labour since 2019.

Businessman Graham Edwards gave £5.2m to the Conservatives in this period.

Next on the list is Mr Hester’s The Phoenix Partnership, which has given £5.2m, including the helicopter flight to Mr Sunak.

Mr Hester also donated £5m in a personal capacity to the Conservatives.

Prof Fisher explained that it used to be more common for companies to donate, instead of individuals – but it is harder to justify this now in an era when spending plans have to get past powerful boards.

Instead, companies can benefit from different, less expensive (on a balance sheet) endeavours, like lobbying or hosting events.

Donors tend to hand over cash or gifts because they want to see a party win which will improve their position, or because of a prior affiliation. Or an individual could just be politically aligned with the party in question.

Can parties return money?

Once again, the short answer is yes.

There have been calls for the Conservatives to return the money given to them by Mr Hester or his company.

Political parties can spend their money how they choose – and this could include giving it back or donating it to charity.

It is not the first time there have been calls for money to be returned.

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The Liberal Democrats faced calls to return money donated to them by Michael Brown, who lived in Majorca but gave money through a company based in the UK – something the rules do not allow.

The Electoral Commission investigated but did not take further action. Mr Brown was later convicted of fraud.

The Labour Party faced calls in 2002 to return a donation from publisher Richard Desmond because his publication “titles are demeaning and degrading to women”.

One time when money did get returned was when Labour accepted a £1m donation from Formula 1 chief Bernie Ecclestone shortly before they came to power in 1997.

At the time, the donation was not made public as there was no requirement to do so. Labour did, however, have a policy at the time of declaring donations.

After coming to power, Labour announced it would ban all sports sponsorships from tobacco companies.

But, following talks with Mr Ecclestone, the government proposed exempting Formula 1 from the ban.

The donation then became public, and a political scandal erupted, so the party committed to give the money back.

In March 1998, Mr Ecclestone cashed a cheque which Labour had written to him for the £1m.

This shows money can be returned, if there is a will to do so.

Politics

Trump’s first 100 days ‘worst in history’ despite crypto promises

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2 hours ago

April 29, 2025

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Trump’s first 100 days ‘worst in history’ despite crypto promises

The first 100 days of the administration of US President Donald Trump have deeply impacted the crypto industry, starting with his own memecoin and culminating in a Bitcoin reserve and a spate of blockchain policymaking.

Trump’s trade war with the entire world has had the largest short-term impact on crypto markets, as crypto prices have wavered amid macroeconomic worry and uncertainty. Higher prices on electronics mean Bitcoin (BTC) miners are finding it harder to break even, and de-dollarization concerns abound.

Still, crypto markets have shown some resilience and cause for optimism in the administration’s crypto-friendly policies. A number of pro-crypto leaders have been appointed to key government agencies, including the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC). The crypto industry’s long-awaited regulatory framework is also imminent.

Trump’s first 100 days have seen remarkable changes for the crypto industry, and it appears that things are only getting started. Here’s a look at what’s happened so far.

Jan. 20 — Trump’s first 100 days kick off with a memecoin

On Jan. 20, while Trump was sworn into office in the rotunda of the Capitol Building, his family’s crypto investment firm, World Liberty Financial (WLFI), launched its second token sale of WLFI tokens.

Massive demand saw prices initially spike, though the true value of the tokens, if any, is yet to be determined, as WLFI is currently not transferable and cannot be traded on any exchanges.

The memecoin served as a kickoff for Trump’s crypto agenda, which has seen unprecedented support for the industry in Washington, DC, along with a slew of moral and ethical concerns among observers and lawmakers.

Jan. 20 — Pro-crypto leaders head up federal agencies on “day one”

The president of the US sets the tone for several federal regulators, including those overseeing crypto. Trump immediately set out to appoint a number of pro-crypto lawyers and businessmen to head up the SEC, the CFTC and other critical federal agencies.

Trump nominated businessman Paul Atkins to lead the SEC on “day one” of his presidency. Atkins would replace Gary Gensler, who was perceived by many in the crypto industry as an enemy to adoption and the industry’s progress.

Also on day one, Trump appointed businessman and crypto investor David Sacks as chair of the President’s Council of Advisors on Science and Technology — or the crypto and AI “czar.”

Atkins wouldn’t be confirmed by the Senate until April 9 and sworn in on April 21. But in the meantime, Trump also tapped former CFTC Commissioner and crypto proponent Brian Quintenz to head up that agency.

Jan. 21 — $500-billion Stargate AI initiative

In a press conference, Trump announced a $500-billion private-led AI infrastructure investment called “Stargate.” The president claimed the project — led by ChatGPT creator OpenAI, SoftBank and Oracle — would create some 10,000 American jobs.

Trump said the US needed to lead the world in AI innovation and keep development onshore. “China is a competitor, others are competitors. We want it to be in this country, and we’re making it available,” he said.

OpenAI claimed that the project would “not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.”

Jan. 21 — Pardon for Silk Road founder Ross Ulbricht

Trump announced on Truth Social that he had called the family of Silk Road 2.0 founder Ross Ulbricht after commuting his sentence.

After his arrest in 2013, Ulbricht was sentenced to life in prison in 2015 without the possibility of parole for his role in facilitating the trafficking of narcotics and other illicit substances.

Ulbricht’s case became a rallying point for libertarian movements and prison reform advocates alike. Libertarian-minded crypto advocates supported Ulbricht, as his platform was one of the first places people could actually spend Bitcoin.

Freeing Ulbricht was one of the many campaign promises Trump made to the crypto community.

Jan. 23 — Ban on digital dollar, establishing a crypto working group

With an executive order, Trump established an internal working group to focus on making the US “the world capital in crypto.” The order also prohibited “the establishment, issuance, circulation, and use” of a US central bank digital currency (CBDC).

CBDCs are a contentious issue in the crypto community, with many privacy activists claiming that they are another form of state surveillance and government control. Enthusiasm over their creation from central bankers has further set the more libertarian-minded crypto community against their creation.

The working group would kickstart the process for creating the forthcoming US Bitcoin and crypto reserves.

Feb. 1 — Trade war begins with tariffs on Mexico, China and Canada

One of the promises of the Trump campaign was to rectify the “bad deals” that the US had with many of its oldest allies and most important trading partners.

Just over a week after he was sworn into office, Trump announced sweeping tariffs on Canada, Mexico and China, citing border security concerns and the supposed proliferation of cross-border trade of fentanyl from those countries.

The same day, Canada announced retaliatory measures. On Feb. 3, Mexico promised to step up security of its northern border, responding to American requests for increased patrols. This led Trump to reverse initial tariff plans on both countries.

The unexpected hostile tariffs from a close partner and ally sent stock and crypto prices tumbling. They marked the beginning of the macroeconomic uncertainty that has come to characterize the early days of the Trump administration.

Feb. 12 — Vinnik-Foegel prisoner swap with Russia

Alexander Vinnik, the convicted money launderer who funneled Bitcoin stolen in the infamous Mt. Gox hack through his crypto exchange BTC-e, returned to his home country of Russia.

Vinnik pled guilty to money laundering conspiracy charges in 2024. BTC-e processed more than $9 billion in transactions and had over 1 million users worldwide, many of whom were in the US.

Vinnik was exchanged for American schoolteacher Marc Fogel, who was teaching at the Anglo-American School of Moscow and had been in a Russian jail since 2021 after being arrested for illegal possession of cannabis.

Feb. 18 — Bankman-Fried makes veiled plea for release

In an interview with The New York Sun, the former CEO of now-defunct crypto exchange FTX, Sam Bankman-Fried, addressed his controversial political contributions, saying the Republican Party was always “far more reasonable.”

Bankman-Fried, or SBF, made widely publicized contributions to the Democratic Party as he purportedly tried to influence democratic policymakers’ approach to the digital asset industry. It later became known that SBF was playing both sides of the aisle, donating significant funds to Republicans, though the exact amount remains unknown.

In the interview, SBF likened his position to that of Trump, claiming that he’d been unfairly treated by the criminal justice system. SBF called into question the conduct of the federal judge overseeing his trial, Judge Lewis Kaplan. “I know President Trump had a lot of frustrations with Judge Kaplan. I certainly did as well.”

Observers saw the interview as an attempt to elicit a pardon from Trump. Roger Ver, an early Bitcoin advocate facing criminal tax evasion charges, has made an outright appeal.

March 7 — Trump establishes Bitcoin reserve and crypto stockpile

On March 7, the 46th day of Trump’s presidency, he signed an executive order establishing a “Strategic Bitcoin Reserve.” Trump made big promises about crypto adoption on the campaign trail, including the possibility of a long-sought-after Bitcoin reserve.

The US reserve, however, would fall short of expectations among Bitcoin maximalists. Rather than create a concrete plan for the US government to purchase and hold Bitcoin, it merely created a single reserve to pool all Bitcoin the government had seized during criminal proceedings.

While the order does state that the government may purchase additional Bitcoin, it must do so in a budget-neutral fashion.

In tandem with the Bitcoin reserve, Trump also established a US Digital Asset Stockpile containing other cryptocurrencies such as Ether (ETH), Solana (SOL), XRP (XRP) and Cardano (ADA).

March 7 — White House Crypto Summit

Leaders of the crypto industry descended on Washington for a meeting at the White House to discuss a wide range of topics related to crypto regulation and the development of the industry in the US.

Attendees included Strategy executive chairman Michael Saylor, Coinbase CEO Brian Armstrong and “crypto czar” David Sacks.

While some attendees, including Chainlink co-founder Sergey Nazarov, were optimistic about the event’s focus on strengthening the US crypto industry, some crypto luminaries who were not on the list were less impressed.

Cardano and IOHK co-founder Charles Hoskinson, who did not attend the event, noted in a video stream that real change — i.e., legislation — must be made in Congress.

“Everybody focuses on the White House because it’s simple and easy to do so. […] And as much as we, as an industry, want this to be a short process, it’s going to be a long and methodical process,” Hoskinson said.

Others put it more simply:

March 25 — WLFI goes stablecoin

WLFI expanded its offerings in March with the soft launch of its stablecoin USD1. The coin, “100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents,” launched on the Ethereum and BNB Chain networks.

News of the token’s launch came just days after WLFI secured more than $500 million by selling its own WLFI tokens.

US lawmakers subsequently called for an ethics probe into WLFI and cited the president’s ability to influence stablecoin policy as a major conflict of interest with the project.

April 2 — Liberation Day

Doubling down on his belligerent trade policy, Trump levies tariffs on all US trade partners on what he dubs “Liberation Day.”

At a special event at the White House, Trump signed an executive order levying reciprocal tariffs on every country with a tariff on US goods, starting at a 10% minimum.

Markets saw a spate of red across the board following the order, and many economic observers raised concerns over a looming recession. Crypto miners based in the US were further squeezed as their operation costs, namely for buying new mining rigs, increased significantly.

Former White House Communications Director Anthony Scaramucci told Cointelegraph, “I would say that he’s had the worst 95 days in modern presidential history. The markets recovered a little, but we’ve got $9 trillion taken from the stock market. You had a growing economy that’s now heading into a medium-sized recession, possibly a steep recession.”

He said that Trump declared a trade war “without any real weaponry” and subsequently lied about progress when the president claimed China was attempting to negotiate.

“The lies are ok — everyone accepts that he’s a congenital liar […] but when you’re declaring war on people and then you’re lying, it’s really bad.”

April 25 — $300,000-per-plate memecoin dinner raises call for impeachment

Top Trump memecoin holders were reportedly offered an opportunity to have dinner with the president, sparking renewed concerns over his crypto project and prompting one US lawmaker to support impeachment.

At a town hall meeting in his home state of Georgia, Democratic Senator Jon Ossoff said he “strongly” supports impeachment. “When the sitting president of the United States is selling access for what are effectively payments directly to him, there is no question that that rises to the level of an impeachable offense,” he said.

Rumors on social media stated that $300,000 would grant tokenholders an audience with the president, a claim the Trump administration later denied.

Trump’s first 100 days could jeopardize change

The first 100 days of Trump’s presidency have brought unprecedented change to the crypto industry. Simultaneously, they have opened it up to increased criticism and controversy as the president’s personal ties with blockchain projects raise ethical questions.

These controversies may well jeopardize the industry’s efforts to effect change in Congress, according to Scaramucci, who said, “Trump has so inflamed everything that he’s made it even hard for [stablecoin legislation] to happen.”

The STABLE Act, which aims to provide guardrails for stablecoin issuance in the US, was introduced in the House of Representatives on March 26 and passed a committee vote on April 3, with prominent Democrats dissenting. The bill will soon head to the floor for a general vote before going to the Senate.

The Senate’s GENIUS Act has recently made headway, passing a vote in the Banking Committee, largely along party lines.

Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest, April 20 – 26

Politics

Circle gets Abu Dhabi regulatory nod to expand in Middle East

Published

2 hours ago

April 29, 2025

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Circle gets Abu Dhabi regulatory nod to expand in Middle East

USDC stablecoin issuer Circle has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), the company announced on April 29.

The approval moves Circle closer to obtaining a full Financial Services Permission (FSP) license, allowing it to operate as a regulated money services provider in the United Arab Emirates, the firm said in an official press release.

Jeremy Allaire, Circle’s Co-Founder and CEO, said the approval “advances our strategy to establish deep roots in markets embracing the onchain economy.” He added:

“It also underscores Circle’s enduring commitment to global stablecoin oversight—strengthening trust, compliance, and adoption worldwide, while laying a resilient foundation for the internet financial system.”

Circle partners with Hub71

In addition to regulatory progress, Circle announced a partnership with Hub71, Abu Dhabi’s tech ecosystem. As part of the collaboration, the two firms plan to work together on projects within ADGM’s digital regulatory sandbox.

Circle will also join Hub71’s digital assets group, sharing its experience with a community of more than 500 tech startups and investors.

Circle’s flagship USDC token is the second-largest stablecoin in terms of market capitalization. As of now, there are $62.03 billion USDC (USDC) tokens in circulation, according to data from CoinMarketCap.

Meanwhile, Circle has been pushing into new global markets amid rising interest in stablecoins.

In July 2024, Circle became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation.

In Japan, Circle expanded its presence through a partnership with SBI Holdings. On March 26, 2025, SBI VC Trade, a subsidiary of SBI Holdings, launched USDC trading, making it the first stablecoin approved under Japan’s regulatory framework.

UAE aims to position itself a major Web3 hub

The United Arab Emirates has been actively working to establish itself as a global Web3 hub, leveraging progressive regulation and strategic partnerships to attract leading digital asset firms.

In August 2024, the country ranked third in a crypto adoption index released by Henley & Partners, an investment migration consultancy firm.

On April 6, Dubai’s real estate and crypto regulatory authorities signed a new agreement aimed at expanding digital asset adoption in the real estate sector. The agreement will link Dubai’s real estate registry with property tokenization through a governance system.

Magazine: Bitcoin price consolidation likely as US Core PCE, manufacturing, and jobs reports print this week

Politics

US DOJ requests 20-year sentence for Celsius founder Alex Mashinsky

Published

5 hours ago

April 29, 2025

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US DOJ requests 20-year sentence for Celsius founder Alex Mashinsky

Alex Mashinsky, the founder and former CEO of the now-defunct cryptocurrency lending platform Celsius, faces a 20-year prison sentence as the US Department of Justice (DOJ) is seeking a severe penalty for his fraudulent activity.

The US DOJ on April 28 filed the government’s sentencing memorandum against Mashinsky, recommending a 20-year prison sentence due to his fraudulent actions leading to multibillion-dollar losses by Celsius customers.

The 97-page memo mentioned that Celsius users were unable to access approximately $4.7 billion in crypto assets after the platform halted withdrawals on June 12, 2022.

“The Court should sentence Alexander Mashinsky to twenty years’ imprisonment as just punishment for his years-long campaign of lies and self-dealing that left in its wake billions in losses and thousands of victimized customers,” the DOJ stated.

Mashinsky’s personal benefit was $48 million

In addition to listing massive investor losses resulting from the Celsius fraud, the DOJ mentioned that Mashinsky has personally profited from the fraudulent schemes in his role.

As part of his plea in December 2024, Mashinsky admitted that he was the leader of the criminal activity at Celsius, that his crimes resulted in losses in excess of $550 million, and that he personally benefited more than $48 million, the authority said.

The DOJ emphasized that Mashinsky’s guilty plea showed that his crimes were “not the product of negligence, naivete, or bad luck,” but rather the result of “deliberate, calculated decisions to lie, deceive, and steal in pursuit of personal fortune.”

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

Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest, April 20 – 26