The government minister responsible for housing didn’t pay enough tax on her house.
Sam and Anne let Angela Rayner’s admission sink in on this episode – as they wonder how much government business is on hold as a result.
The independent ethics adviser Laurie Magnus’ view on how she took inaccurate legal advice could be public within days – presumably that means the cabinet reshuffle has to wait until the Deputy Prime Minister knows her fate.
Never mind what else it might mean for the early days of Keir Starmer’s “phase two”.
But, whatever the outcome, is it safer for Starmer to keep Angela Rayner in a job?
A New York jury was unable to reach a verdict in the case of Anton and James Peraire-Bueno, the MIT-educated brothers accused of fraud and money laundering related to a 2023 exploit of the Ethereum blockchain that resulted in the removal of $25 million in digital assets.
In a Friday ruling, US District Judge Jessica Clarke declared a mistrial in the case after jurors failed to agree on whether to convict or acquit the brothers, Inner City Press reported.
The decision came after a three-week trial in Manhattan federal court, Â resulting in differing theories from prosecutors and the defense regarding the Peraire-Buenosâ alleged actions involving maximal extractable value (MEV) bots.
A MEV attack occurs when traders or validators exploit transaction ordering on a blockchain for profit. Using automated MEV bots, they front-run or sandwich other trades by paying higher fees for priority.
In the brothersâ case, they allegedly used MEV bots to âtrickâ users into trades. The exploit, though planned by the two for months, reportedly took just 12 seconds to net the pair $25 million.
In closing arguments to the jury this week, prosecutors argued that the brothers âtrickedâ and âdefraudedâ users by engaging in a âbait and switchâ scheme, allowing them to extract about $25 million in crypto. They cited evidence suggesting that the two plotted their moves for months and researched potential consequences of their actions.Â
âLadies and gentlemen, bait and switch is not a trading strategy,â said prosecutors on Tuesday, according to Inner City Press. âIt is fraud. It is cheating. It is rigging the system. They pretended to be a legitimate MEV-Boost validator.âÂ
In contrast, defense lawyers for the Peraire-Buenos pushed back against the US governmentâs theory of the two pretending to be âhonest validatorsâ to extract the funds, though the court ultimately allowed the argument to be presented to the jury. Â
âThis is like stealing a base in baseball,â said the defense team on Tuesday. âIf thereâs no fraud, thereâs no conspiracy, thereâs no money laundering.â
Whatâs at stake for the crypto industry following the verdict?
Though the case ended without a verdict, the mistrial has left the crypto industry divided, with many observers debating the legal and technical implications of treating MEV-related activity as a potential criminal offense. Crypto advocacy organization Coin Center filed an amicus brief on Monday after opposition from prosecutors.
âI donât think whatâs in the indictment constitutes wire fraud,â said Carl Volz, a partner at law firm Gunnercooke, in a Monday op-ed for DLNews. âA jury could conclude differently, but if it does, itâll be because the brothers googled stupidly and talked too much, for too long, with the wrong people.â
The shutdown of the US government entered its 38th day on Friday, with the Senate set to vote on a funding bill that could temporarily restore operations.
According to the US Senateâs calendar of business on Friday, the chamber will consider a House of Representatives continuing resolution to fund the government. Itâs unclear whether the bill will cross the 60-vote threshold needed to pass in the Senate after numerous failed attempts in the previous weeks.
Amid the shutdown, Republican and Democratic lawmakers have reportedly continued discussions on the digital asset market structure bill. The legislation, passed as the CLARITY Act in the House in July and referred to as the Responsible Financial Innovation Act in the Senate, is expected to provide a comprehensive regulatory framework for cryptocurrencies in the US.Â
Although members of Congress have continued to receive paychecks during the shutdown â unlike many agencies, where staff have been furloughed and others are working without pay â any legislation, including that related to crypto, seems to have taken a backseat to addressing the shutdown.
At the time of publication, it was unclear how much support Republicans may have gained from Democrats, who have held the line in demanding the extension of healthcare subsidies and reversing cuts from a July funding bill.
Is the Republicansâ timeline for the crypto bill still attainable?
Wyoming Senator Cynthia Lummis, one of the market structure billâs most prominent advocates in Congress, said in August that Republicans planned to have the legislation through the Senate Banking Committee by the end of September, the Senate Agriculture Committee in October and signed into law by 2026.
Though reports suggested lawmakers on each committee were discussing terms for the bill, the timeline seemed less likely amid a government shutdown and the holidays approaching.
Japanâs financial regulator, the Financial Services Agency (FSA), endorsed a project by the countryâs largest financial institutions to jointly issue yen-backed stablecoins.
In a Friday statement, the FSA announced the launch of its âPayment Innovation Projectâ as a response to progress in âthe use of blockchain technology to enhance payments.â The initiative involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFGâs stablecoin issuance platform.
The announcement follows recent reports that those companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFGâs stablecoin issuance platform Progmat. The institutions in question serve over 300,000 corporate clients.
The regulator noted that, starting this month, the companies will begin issuing payment stablecoins. The initiative aims to improve user convenience, enhance Japanese corporate productivity and innovate the local financial landscape.
The participating companies are expected to ensure that users are protected and informed about the systems they use. âAfter the completion of the pilot project, the FSA plans to publish the results and conclusions,â the announcement reads.
The announcement follows the Monday launch of Tokyo-based fintech firm JPYCâs Japan-first yen-backed stablecoin, along with a dedicated platform. The companyâs president, Noriyoshi Okabe, said at the time that seven companies are already planning to incorporate the new stablecoin.
Recently, Japanese regulators have been hard at work setting new rules for the cryptocurrency industry. So much so that Bybit, the worldâs second-largest crypto exchange by trading volume, announced it will pause new user registrations in the country as it adapts to the new conditions.
Local regulators seem to be opening up to the industry. Earlier this month, the FSA was reported to be preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.
At the same time, Japanâs securities regulator was also reported to be working on regulations to ban and punish crypto insider trading. Following the change, Japanâs Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and impose fines on violators.
