Starmer says ‘terrible inheritance’ to blame for emergency prison measures
The government is “managing the risk” to public safety with its emergency measures to prevent prisons from overcrowding, Sir Keir Starmer said.
Speaking during a trip to Belfast, the prime minister blamed the “terrible inheritance” from the Conservative government and the recent far-right riots on his need to activate Operation Early Dawn.
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The long-standing contingency mechanism delays defendants being summoned to a magistrates’ court until a prison space becomes available, should they be remanded into custody.
It was previously used by the Conservative government and allows defendants to be kept in police cells when prisons reach full capacity.
Asked whether the plan posed a risk to public safety in respect of policing resources being diverted, or more prisoners being bailed, Sir Keir said the government was making “really tough decisions, and nobody wants to take them”.
He blamed this on the “terrible inheritance of prisons that we had as an incoming government from the previous government”.
“There was a basic failure, which is a failure to have enough prison places for the number of prisoners that were being sentenced to prison,” the prime minister said.
“That was about as basic a failure of government from the previous government that you could possibly have got.
“We’ve had to deal with that with the additional strain of the disorder in recent weeks.”
Pressed on the threat to public safety, Sir Keir said the government is “managing that risk… to make sure we do have the spaces available for the prisoners”.
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Do prisons have space for rioters?
Pointing to the swift response to the riots, the PM added: “I think the response of the criminal justice to the recent disorders has been a major reason that the disorders have subsided for the time being.”
Prosecutors have been trying to fast-track cases of people accused of involvement in the recent riots in parts of the UK, with over 1,000 arrests and 400 charges made so far and lengthy sentences handed down to those found guilty.
The disorder erupted following the spread of misinformation online after the fatal stabbing of three young girls in Southport.
The Ministry of Justice said that in taking “decisive action to tackle violent thuggery on our streets”, the UK’s longstanding capacity issues in prisons, which it said had been operating at critical levels for the last several years, had been exacerbated.
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Operation Early Dawn will be put in place in the North East and Yorkshire, Cumbria and Lancashire, and Manchester, Merseyside and Cheshire regions.
Downing Street said the plans could be triggered and deactivated several times over the next few weeks as needed.
Policy ‘will delay court hearings’
The move has concerned prison bosses and legal experts.
Tom Franklin, chief executive of the Magistrates’ Association, said the measures would lead to delays in defendants appearing in court.
Mark Fairhurst, national chairman of the Prison Officers’ Association, said while the most serious offenders would still end up in court and be guaranteed a prison cell, less serious offenders would either spend longer in police cells or be bailed.
However, he clarified that this would not mean that some people who would normally go to jail would avoid it.
Rioting broke out in Southport after the fatal stabbing of three girls. Pic: PA
Nick Emmerson, president of the Law Society of England and Wales, said that reactivating Operation Early Dawn would impact victims, defendants, and lawyers, and that sustained investment is needed in the criminal justice system “to avoid it collapsing completely”.
Operation Early Dawn was triggered by the Conservative government in May in a bid to tackle overcrowding in jails.
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Last month, the Ministry of Justice said violence and self-harm in prison had risen to “unacceptable” levels as overcrowding pushed jails to the “point of collapse”.
Justice Secretary Shabana Mahmood announced plans to cut the proportion of the sentence inmates must serve behind bars from 50% to 40%.
The temporary move – which does not apply to those convicted of sex offences, terrorism, domestic abuse or some violent offences – is expected to result in 5,500 offenders being released in September and October.
The US Securities and Exchange Commission and crypto exchange Gemini have asked to pause the regulator’s suit over the exchange’s Gemini Earn program, saying they want to discuss a potential resolution.
In an April 1 letter to New York federal court judge Edgardo Ramos, lawyers representing the SEC and Genesis requested a 60-day hold on the case and that all deadlines be pulled “to allow the parties to explore a potential resolution.”
“In this case, the parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay,” the letter states.
The lawyers added that a stay was in the court’s interest as “a resolution would conserve judicial resources” and proposed that a joint status report be submitted within 60 days after the entry of the stay.
The SEC sued Gemini and crypto lending firm Genesis Global Capital in January 2023, alleging they offered unregistered securities through the Gemini Earn program.
In March 2024, Genesis agreed to pay $21 million to settle charges related to the lending program, but the enforcement case against Gemini remains outstanding.
Letter from SEC and Genesis Global requesting extension of stay. Source: CourtListener
The letter did not specify what a possible resolution would entail, but the SEC has dropped several lawsuits it launched against crypto companies under the Biden administration, including against Coinbase, Ripple and Kraken.
Related: Will new US SEC rules bring crypto companies onshore?
In February, Gemini said the SEC closed a separate investigation into the firm as the regulator winds back its crypto enforcement under President Donald Trump.
“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course, Gemini is not alone,” Gemini co-founder Cameron Winklevoss said at the time.
OpenSea, Crypto.com and Uniswap, among others, have also recently reported that the SEC had closed similar probes into their companies that were investigating alleged breaches of securities laws.
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Two Republicans who received a combined $1.5 million from the crypto-backed political action committee (PAC) Fairshake will enter the US House after winning special elections in Florida.
Republican Jimmy Patronis won the vacant seat in Florida’s 1st Congressional District to replace Matt Gaetz, taking 57% of the vote to defeat Democrat Gay Valimont, according to AP News data.
Randy Fine also took Florida’s 6th Congressional District with 56.7% of the vote to beat his Democratic rival, public school teacher Josh Weil, and fill a seat left vacant by Mike Waltz, who took a job as White House national security adviser.
Florida’s 1st and 6th Congressional Districts — located in Florida’s western panhandle and along the state’s northeast coast — have been controlled by Republicans for roughly 30 years, but their lead has narrowed in recent years.
Fairshake, a PAC backed by crypto industry giants including Coinbase, Ripple and Andreessen Horowitz, gave Fine around $1.16 million in advertising spending and funneled $347,000 to Patronis to support his campaign.
Both Republicans have expressed support for the crypto industry, with Fine stating in a Jan. 14 X post that “Floridians want crypto innovation!”
Source: Randy Fine
Fairshake and its affiliates poured around $170 million into the 2024 US presidential and congressional elections to back candidates who committed to supporting the crypto industry.
The wins by Patronis and Fine increased Republican representation in the House to 220 seats, with the Democrats holding 213 seats.
There are two vacant seats to be filled after Texas and Arizona Democrats Sylvester Turner and Raúl Grijalva died on March 5 and March 13, respectively.
Florida can expect to see a crypto-friendly regulatory environment
The victories for Patronis and Fine likely mean that crypto legislation will continue to see support in the US capital.
The Republican Party would have maintained its House majority even if it lost both seats in Florida, but it would have made it more difficult for some of the recently introduced Republican-backed crypto bills to pass through the House and Senate.
Related: Florida bill proposes strict rules against online gambling
At the Digital Assets Summit on March 18, Democratic Congressman Ro Khanna said he believes Congress “should be able to get” both a stablecoin and crypto market structure bill done this year.
Bills that could eventually make their way to the House include the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which passed the Senate Banking Committee in an 18-6 vote on March 13.
Senator Cynthia Lummis also reintroduced a Bitcoin reserve bill about a week after the Trump administration announced the establishment of a Strategic Bitcoin Reserve on March 6, with the legislation referred to the Senate Banking Committee on March 11.
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Several British trade associations have asked Prime Minister Keir Starmer’s office to appoint a special envoy dedicated to crypto and for a dedicated action plan for digital assets and blockchain technology.
In a March 31 letter, the coalition of six UK digital economy trade bodies urged Starmer’s special adviser on business and investment, Varun Chandra, for a “greater strategic focus and alignment to deliver investment, growth and jobs” for the crypto industry.
The group, which consisted of the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation and techUK, noted the US policy shift on crypto under President Donald Trump and his appointment of a crypto czar.
Britain’s commitment to an economic trade deal focused on technological cooperation with the US “presents a significant opportunity to mirror the United States’ ambition in fostering leadership in blockchain, digital assets, and other emerging financial technologies,” the letter stated.
The group recommended that the UK appoint a blockchain special envoy, similar to the US, to coordinate policy, foster innovation, and position the country competitively in global markets.
The trade bodies also called for the development of a dedicated government action plan for crypto and blockchain technology, including a concierge service to attract high-potential firms.
They added that the government should acknowledge and leverage the commonalities between blockchain, quantum computing and artificial intelligence technologies, including potential applications for government services.
Another recommendation was to create a high-level industry-government-regulator engagement forum to ensure informed decision-making and cross-sector collaboration.
The UK crypto and tech associations lobbying the government for a policy shift. Source: LinkedIn
“With deep pools of talent, access to capital, world-class academic institutions, and sophisticated regulators, the UK provides an environment where digital assets and blockchain innovation can thrive,” they stated.
Related: UK should tax crypto buyers to boost stock investing, economy, says banker
The coalition argues that crypto and blockchain technology could boost the UK economy by 57 billion British pounds ($73.6 billion) over the next decade, with the sector potentially increasing global gross domestic product by 1.39 trillion pounds ($1.8 trillion) by 2030.
Tom Griffiths, the co-founder and managing partner of crypto compliance advisory firm BitCompli, said in response to the letter on LinkedIn that the Financial Conduct Authority “has a lot of talent and a good sight of future plans, but the UK is definitely losing pace with Dubai, Singapore, and other EU jurisdictions.”
“Now is the time for the FCA to act, or the UK will lose out on this huge opportunity, which is digital assets and all the benefits this sector can bring, not only now but over the next 20 years,” he added.
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