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We may have been in Easter recess the past couple of weeks, but on both sides of the party divide, there were those who did not get a rest from politics.

MP William Wragg undoubtedly had a dysfunctional week as the man at the centre of the Westminster honeytrap scandal.

He resigned the Conservative party whip as some colleagues looked on with a mixture of bemusement and anger at Number 10’s handling of the whole sorry affair.

Meanwhile, on the Labour side, deputy leader Angela Rayner can’t seem to shake off or shut down the persistent questions about whether she paid the right amount of tax when she sold her council house nearly a decade ago.

She insists she has done nothing wrong while there are Conservatives looking to weaponise the issue in this election year – with at least one local Tory councillor and other protesters this week hounding her on a visit to Teesside, with banners dubbing her a “tax dodger”‘ in the hope it will stick.

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This week in Electoral Dysfunction, Jess, Ruth and I chew over both the substance and the politics of these difficult situations and ask whether Number 10 and Labour are making tricky issues better or worse.

When it comes to Mr Wragg, who admitted sharing MPs’ and journalists’ phone numbers with someone he met on Grindr who had “compromising things” on him, there is widespread incredulity that a sitting MP would do such a thing, overlaid with some anger over Number 10’s handling of it – with some arguing that Rishi Sunak failed to move quickly enough to take control of the story, suspend Mr Wragg and look decisive.

Instead, ministers were dispatched to defend the MP as ”courageous”, while it was Mr Wragg himself who decided to give up the Tory whip his week. He is now sitting as an independent MP.

“Madness [to send pictures and give out personal details] and yet our leadership decided to defend him,” one former cabinet minister texted this week. “If it wasn’t so stupid. It would be genuinely funny. The script of the Thick Of It. A few of us messaged centre at weekend to say WTF. His resignation was inevitable.”

Ruth agrees, and says – while she has sympathy for Mr Wragg being in this “horrible situation” – that he is “somebody in an important job who has responsibilities” to the place he works and people with whom he works.

“The idea you throw all of that out of the window for a quick shag or to exchange a pic is so wilfully irresponsible that actually I don’t think [much of] the level of understanding, or acceptance or excuse that the government made on his behalf.

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Sexting MP ‘right to quit’

“I think it’s bad judgement and I think this is another one where you look at the judgement of the prime minister and go, you know this, this doesn’t fly.”

But aside from questions about the political handling from the centre – and there are issues around safeguarding a vulnerable MP, which I talk about in the pod – there are also wider questions, again, around MPs’ security in a world where contacts count and phone numbers are currency.

“People give numbers out all the time. Having people’s phone numbers is a massive currency in Westminster,” explains Jess, who points out that MPs are using personal phones in parliament.

“The trouble is that I think people think we have parliamentary phones but it’s just my personal phone, so they don’t own it. I’m way more careful about my parliamentary computer and the iPad they gave me.

“So I imagine what will come out of this is probably that we all have to have parliamentary-issued phones that are locked down by the security services. I imagine that’s where it’s going.”

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Starmer: Rayner tax story is ‘smear’

With a sex scandal engulfing the Conservatives once more, on the other side of the political divide, Ms Rayner is struggling to put to bed questions over whether she paid the right amount of tax when she sold her council house nearly a decade ago, before she became an MP.

Ms Rayner has made it clear she took tax advice at the time and has done nothing wrong, while Labour leader Sir Keir Starmer has come out to defend her and accused the Tories of trying to smear her over a story with no substance.

Neither Ruth, Jess nor I think the story is getting much cut through, largely because of the complexity of it all, but that isn’t stopping the Conservatives pursuing Ms Rayner with real ferocity.

Ruth thinks the Tories are going in hard for a number of reasons.

First, she thinks Labour “hasn’t had this level of scrutiny for a long time”, so this is an opportunity for the party machine to “try to flex its muscles”. Second, Ms Rayner has been used as “an attack dog” for the party on these issues so “what’s good for the goose is good for the gander”.

Read more:
Angela Rayner’s tax affairs – a smear or a real trust problem for Labour?

Michelle Donelan: Minister’s legal fees take total cost of libel case to £34,000

She also argues that “there is a purpose to man-mark her off the pitch”, but it won’t change the public’s view of Ms Rayner: “She’ll be a Marmite politician for the whole of her career because of the strength of her character. The people who love her will love her and the people who can’t stand her will turn the TV off when she comes on.”

Jess concedes the issue is hurting Ms Rayner but thinks she will ride it out and believes there’s a risk that “if it starts to look like the Conservatives are picking on her, it has a counter effect”.

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But, in a similar way to the Beergate story that hounded Sir Keir and Ms Rayner during 2021 – they were accused, and cleared, of breaking lockdown rules in Durham – the Conservatives show little sign of letting go of Ms Rayner or her tax affairs until they have wrung every single drop out of it.

And if, in an election year, they can try to make “tax dodger” land – or at least disrupt her campaigning – Conservative campaign headquarters will chalk it up as a win.

So while the hope from Ms Rayner’s and Sir Keir’s respective offices is that the story will burn itself out, it may be that Ms Rayner, in the end, has to do more to put it properly to bed: on that, all three of us agree.

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Binance mulls new US strategy, CZ potentially reducing stake: Report

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Binance mulls new US strategy, CZ potentially reducing stake: Report

Binance, the world’s largest cryptocurrency exchange by trading volume, is considering a strategic reshuffling to strengthen its presence in the US market, a move that could see Binance co-founder Changpeng “CZ” Zhao’s majority stake in the company reduced.

Zhao’s controlling stake in Binance has been a “major hurdle” to the company expanding to strategically critical US states, according to Bloomberg, citing people familiar with the matter. Although no concrete plans have been announced, the conversation surrounding any potential action remains reportedly “fluid.” 

The company is also considering partnerships with US-based companies, including asset manager BlackRock and decentralized finance (DeFi) platform World Liberty Financial (WLFI), which is linked to US President Donald Trump, to strengthen its footprint in the country.

Rumors of Binance’s return to the US began to circulate in October after Trump pardoned Zhao, fueled by speculation from crypto industry executives and comments that Zhao made on social media.

“Will do everything we can to help make America the capital of crypto and advance Web3 worldwide,” Zhao said in October after the pardon.

Changpeng Zhao, United States, Binance
Source: CZ

In June 2019, Binance announced that it would stop serving US customers, and a separate company, called Binance.US and operated by BAM Trading Services, was formed to provide regulatory-compliant services to US users. 

In 2023, the US Securities and Exchange Commission alleged that Binance Holdings Ltd. operated both Binance.com and BAM Trading Services.

Binance.US does not feature crypto derivatives or access to the global Binance exchange’s liquidity and operates as a completely separate crypto exchange.

Cointelegraph reached out to Binance and Binance.US but did not receive a response by the time of publication.

The US is considered a key market for crypto exchanges and is ranked as the number two for global crypto adoption, according to Chainalysis’ 2025 Global Crypto Adoption Index. Expanding to the US would open up US liquidity to the world’s largest crypto exchange.

Changpeng Zhao, United States, Binance
Binance claims the top spot among centralized crypto exchanges in terms of trading volume. Source: CoinGecko

Related: Binance names co-founder Yi He co-CEO alongside Richard Teng

Several US lawmakers voice opposition to the CZ pardon and the crypto industry

Trump’s pardon of Zhao in October drew backlash from several Democratic Party lawmakers in the US, including Massachusetts Senator Elizabeth Warren and California Congresswoman Maxine Waters.

Waters said the pardon was a form of pay-to-play and accused Trump of doing political favors for the crypto industry that “helped line his pockets.”

Warren, who is one of the most vocal critics of the crypto industry, also criticized the pardon, characterizing it as “corruption.”  

The comments reflect pockets of resistance among some Democratic lawmakers to the crypto industry’s continued expansion in the US and could signal potential opposition to Binance returning to the US.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom