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Sir Keir Starmer has said “it will take some time” before living standards improve in the UK as he faced a grilling from senior MPs.

The prime minister said “we want people to feel better off” but warned his government could not fix everything “by Christmas”.

He was facing the chairs of several parliamentary committees in his first appearance in front of the powerful liaison committee.

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Sir Keir said the increase in the national living wage was a “pay rise for the three million who are the lowest paid” and public sector workers were also feeling the benefit of pay increases.

“In addition to that, the measures that we put in place will improve living standards,” he said.

He added: “It will take some time, of course it will.

“One of the biggest mistakes, I think, in the last 14 years was the idea that everything could be fixed by Christmas. It can’t.”

He said planning how to fix things “will take time”, as will changing regulations to ensure growth can happen.

The prime minister said the October budget, which has been criticised by several sections of society, was about “stabilising the economy”.

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But the prime minister added more needs to be done to grow the economy, with planning reforms a key concern.

The government’s plan to build 1.5 million houses over the next five years will happen, he said.

“I accept it’s difficult, I accept its stretching. But it’s hugely important,” he added.

Sir Keir also defined “blockers” after he pledged to “back the builders, not the blockers”.

Blockers are those who say the UK “shouldn’t have targets” for housebuilding and those who argue “we shouldn’t build here”, he added.

The prime minister gave an example of wind turbines taking 13 years to be installed due to planning objections and delays connecting them to the energy grid.

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Donald Trump and Keir Starmer.
Pic:Reuters
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Donald Trump and Keir Starmer met earlier this year. Pic:Reuters

Sir Keir was also asked about foreign affairs and defence, including on the possibility of tariffs being introduced by Donald Trump.

He said he is “not a fan” of tariffs but thinks he can make progress on trade with the US, and added he does not accept the UK can only be close to the EU or the US.

On defence, the PM was asked by Labour MP Tan Dhesi, chair of the defence committee, what keeps him up at night.

He said he is not kept awake because he is confident in the UK’s defence and security, adding we have “first class personnel here and across the world”.

However, he said he accepts we are “living in a more volatile world” and his government has doubled down on support for NATO.

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On migration, Sir Keir said the UK will always need overseas skills but the levels are too high.

“Obviously what I don’t want to do is to choke off businesses that are thriving at the moment by cutting their legs off and say ‘you can’t have inward migration’,” he said.

Sir Keir was thanked by the liaison committee chair Dame Meg Hillier for his “commitment to transparency and scrutiny”.

The PM appears in front of the committee roughly twice a year so the next time could be next summer.

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US bank regulator clears national banks to facilitate crypto transactions

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US bank regulator clears national banks to facilitate crypto transactions

The US Office of the Comptroller of the Currency has affirmed that national banks can intermediate cryptocurrency trades as riskless principals without holding the assets on their balance sheets, a move that brings traditional banks a step closer to offering regulated crypto brokerage services.

In an interpretive letter released on Tuesday, the regulator said banks may act as principals in a crypto trade with one customer while simultaneously entering an offsetting trade with another, a structure that mirrors riskless principal activity in traditional markets. 

“Several applicants have discussed how conducting riskless principal crypto-asset transactions would benefit their proposed bank’s customers and business, including by offering additional services in a growing market,” notes the document.

According to the OCC, the move would allow customers “to transact crypto-assets through a regulated bank, as compared to non-regulated or less regulated options.”

Banks, United States, Donald Trump
The OCC’s interpretive letter affirms that riskless principal crypto transactions fall within the “business of banking.” Source: US OCC

The letter also reiterates that banks must confirm the legal permissibility of any crypto activity and ensure it aligns with their chartered powers. Institutions are expected to maintain procedures for monitoring operational, compliance and market risks.

“The main risk in riskless principal transactions is counterparty credit risk (in particular, settlement risk),” reads the letter, adding that “managing counterparty credit risk is integral to the business of banking, and banks are experienced in managing this risk.”

The agency’s guidance cites 12 U.S.C. § 24, which permits national banks to conduct riskless principal transactions as part of the “business of banking.” The letter also draws a distinction between crypto assets that qualify as securities, noting that riskless principal transactions involving securities were already clearly permissible under existing law.

The OCC’s interpretive letter — a nonbinding guidance that outlines the agency’s view of which activities national banks may conduct under existing law — was issued a day after the head of the OCC, Jonathan Gould, said crypto firms seeking a federal bank charter should be treated the same as traditional financial institutions.

According to Gould, the banking system has the “capacity to evolve,” and there is “no justification for considering digital assets differently” than traditional banks, which have offered custody services “electronically for decades.”

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From ‘Choke Point 2.0’ to pro-crypto policy

Under the Biden administration, some industry groups and lawmakers accused US regulators of pursuing an “Operation Choke Point 2.0” approach that increased supervisory pressure on banks and firms interacting with crypto.

Since President Trump took office in January after pledging to support the sector, the federal government has moved in the opposite direction, adopting a more permissive posture toward digital asset activity.

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