UK Labour MPs are preparing to push for a permanent ban on crypto donations to political parties and candidates, arguing that recent allegations around Nigel Farage’s funding have underscored risks of undue influence in British politics.

According to The Guardian, the party is looking to overhaul existing donation rules after a March moratorium on crypto contributions was introduced and then prompted further scrutiny. The renewed push is linked to Farage’s resignation from Parliament and reporting that he received large “gifts” connected to the digital-asset industry.

Key takeaways

• Labour MPs are considering making the March crypto-donation moratorium permanent, moving from temporary restraint to a lasting rule change.
• The push follows Farage’s resignation and claims that he accepted millions in donations described as “gifts” from crypto-linked figures.
• UK lawmakers plan to review proposed amendments next week, potentially tightening political funding limits for digital assets.
• A by-election in Farage’s constituency will be triggered, but major parties reportedly plan not to run candidates, leaving the contest to voters.

A temporary ban becomes a permanent proposal

The legislative debate centres on the March moratorium on crypto donations, which was announced by the UK government as part of a broader effort to protect democratic processes. The government’s move included a cap on donations from overseas electors and a ban on crypto donations, framed explicitly around safeguarding the integrity of elections.

Labour now wants that crypto restriction to be extended beyond its initial window. The Guardian reports that MPs have tabled amendments aimed at turning the moratorium into a permanent measure.

Liam Byrne, a Labour MP for Birmingham Hodge Hill and Solihull North and chair of the business select committee, is among the figures backing the changes. He argued that the scale of the alleged inflows—cited in the report as “$268 million”—could fuel a wider political media ecosystem that benefits populist movements.

In a post on X, Byrne reiterated his view that stronger donation safeguards are needed, linking the current push to evidence of how crypto-related money could intersect with political influence.

Farage’s resignation reignites the funding controversy

Farage announced his resignation on Tuesday, following reporting about contributions he accepted while serving as MP for Clacton. He said the UK parliamentary standards commissioner was investigating the donations, while maintaining that he “did nothing wrong.”

The allegations described in the reporting include a $6.7 million “gift” from crypto billionaire Christopher Harborne and additional support—such as staff, security, transport, and accommodation—linked to George Cottrell, described as a convicted fraudster connected to a crypto casino.

Earlier coverage from Cointelegraph noted Farage’s resignation was tied to the controversy over crypto donations and gifts. That resignation is expected to keep the issue at the top of the UK political agenda, particularly as Labour seeks to lock in lasting limits.

What Labour MPs want to change—And why it matters

Under the reported plan, Labour lawmakers intend to consider amendments to the representation of the people measures next week. If adopted, a permanent crypto donation ban would represent a significant tightening of rules around how digital-asset wealth can flow into electoral politics.

For investors and builders in the crypto economy, the practical implication is straightforward: policy risk around political funding could shift from a temporary, trial-like restriction to a durable compliance requirement—one that may influence how crypto-linked businesses think about political engagement in the UK.

It also changes the timeline for uncertainty. A moratorium implies a watch-and-review period; a permanent ban implies long-term regulatory expectations. Market participants typically price in policy duration, and longer-lived restrictions tend to reduce the odds of sudden rule reversals—either tightening further or reversing course.

There is also a governance angle. Labour’s framing, as reported, focuses on democracy-protection rather than market conduct. That means the next step for observers is not just how the crypto donation ban is written, but how enforcement is handled and whether standards investigations evolve into broader election-law reforms.

By-election dynamics and the leadership question

Farage’s resignation automatically triggers a by-election in Clacton. He told constituents that “the people of Clacton should be the judges of my actions,” according to the reported coverage. However, the major party landscape is expected to be unusual: The Guardian reports that Labour, Conservatives, Liberal Democrats, and Greens will reportedly not field candidates.

UK Prime Minister Keir Starmer has described Farage’s move as a “desperate stunt,” a characterization that signals the political conflict around the donation allegations is likely to remain sharply contested.

Separately, a potential political leadership transition could affect how quickly Labour pushes the crypto donation issue through parliament. Earlier this week, a week-long window reportedly opened for Labour MPs to nominate candidates for the party’s next leader, who would also become prime minister if Labour wins.

Cointelegraph previously noted that Andy Burnham—a Labour MP and former mayor of Greater Manchester—has been positioned as a contender following Starmer’s resignation. As mayor, Burnham backed the idea of making the city a “Web3 powerhouse” and supported using digital technology for economic development.

If Burnham secures enough support to win the leadership contest, he may face immediate pressure to address both the proposed crypto donation ban and broader questions about how UK regulators oversee crypto activity, including the Financial Conduct Authority’s role.

What to watch next

Next week’s consideration of Labour’s proposed amendments will be the key milestone. Observers should watch whether the party’s push results in a permanent statutory ban on crypto donations and, equally important, how any enforcement mechanisms and parliamentary standards findings develop around the Farage-linked allegations.

Key Takeaways

• Secondary market valuations place Anthropic at $1.2 trillion, representing a 550% surge year-over-year
• Investor appetite dramatically outweighs available shares, with current shareholders reluctant to part with equity
• Special purpose vehicles facilitate the majority of transactions, despite the company’s official disapproval
• OpenAI’s secondary market standing now sits at $908 billion, trailing its competitor
• A confidential IPO filing was submitted to the SEC by Anthropic in early June 2026

The artificial intelligence firm Anthropic, creator of the Claude AI assistant, has achieved a staggering $1.2 trillion valuation in secondary market trading. This milestone positions the company as the world’s highest-valued private artificial intelligence venture, surpassing its primary competitor OpenAI.

This remarkable $1.2 trillion valuation marks a 550% climb compared to the same period last year, as reported by Javier Avalos, who serves as cofounder and chief executive of Caplight, a platform specializing in private secondary market transactions.

Avalos characterized Anthropic as representing “the most sought-after company the venture secondary market has ever seen.”

Limited Supply Creates Transaction Bottleneck

While investor interest remains extraordinarily high, actual completed deals remain surprisingly scarce. Glen Anderson, who heads Rainmaker Securities as CEO, verified that transactions are indeed occurring at the $1.2 trillion valuation mark, though successful closings happen infrequently.

“The demand outstrips the supply in Anthropic so much that it’s rare to get a trade done because no one’s selling,” Anderson told Business Insider.

Since neither Anthropic nor OpenAI trades on public exchanges, interested investors must navigate secondary markets to acquire ownership stakes. This requires finding employees or early-stage backers willing to liquidate their positions — a challenging endeavor given most stakeholders prefer to hold.

Some eager investors have resorted to extraordinary measures in their pursuit of Anthropic equity, including proposals to trade residential properties in exchange for company shares.

Special Purpose Vehicles Dominate Trading Activity Despite Corporate Resistance

The transactions that do materialize predominantly utilize special purpose vehicles, commonly known as SPVs. These financial structures aggregate capital from numerous investors to execute a single unified transaction.

Anthropic has taken a firm public stance against this approach. The company’s official website includes a clear warning: “Invest at your own risk: if someone offers you a way to participate, even on an indirect basis, in an investment in Anthropic, assume that it is invalid.”

Avalos additionally highlighted that SPV arrangements frequently carry substantial fees that buyers must absorb.

Anthropic’s most recent formal capital raise, a Series H round finalized in late May 2026, established the company’s valuation at $965 billion. Current secondary market pricing of $1.2 trillion represents a significant premium over that official figure.

OpenAI, which maintained valuation superiority over Anthropic for an extended period, currently trades at $908 billion on the Caplight platform.

This valuation divergence between the two AI leaders also manifests in their latest primary funding rounds. OpenAI secured an $852 billion valuation following its March 2026 financing, while Anthropic commanded $965 billion in its Series H.

Investor enthusiasm for OpenAI had experienced a relative lull until recent developments. The company’s launch of its GPT-5.6 model family, featuring the premium “Sol” model alongside the cost-effective “Terra” variant, has sparked renewed purchasing interest, Anderson observed.

Regarding the comparative demand between the two organizations, Avalos estimated approximately five potential Anthropic investors for every two seeking OpenAI exposure.

Anthropic submitted a confidential initial public offering prospectus to the Securities and Exchange Commission in early June 2026. Company representatives have indicated that the ultimate timing for any public market debut will be determined by prevailing market conditions.

Technology giant Sony’s online banking unit said it received conditional approval to establish a U.S. national trust bank subsidiary to support the issuance and management of dollar-denominated stablecoins.

The planned unit, Connectia Trust, National Association, will be based in New York and capitalized with $40 million, according to a Sony Financial Group announcement. Sony Bank will own 100% of the subsidiary.

The move comes as stablecoin usage is surging. Transaction volume hit a $1.79 trillion record last month, 63% more than in May and more than double the year-earlier level, according to Visa’s onchain dashboard.

With dollar-pegged tokens accounting for more than 99% of the total $311 billon market capitalization, according to DeFiLlama data, it may be a difficult market to crack.

Not only do market leaders USDT and USDC alone account for about $250 billion of the total, competition is increasing. A wave of potential rivals has also won conditional approval from the Office of the Comptroller of the Currency (OCC) for federal trust-bank structures tied to stablecoin businesses, including Stripe-owned Bridge, Paxos and Circle Internet.

Members of the UK’s ruling Labour party are considering a total ban on digital asset donations in response to Nigel Farage’s resignation from Parliament and the potential influence crypto billionaires had on his policies.

The Guardian reported Thursday that Labour MPs are looking to overhaul existing rules on donations to political parties and candidates. Specifically, lawmakers have proposed that a moratorium on crypto donations enacted in March be made permanent after it was revealed that the Reform leader personally accepted millions of British pounds in what he called “gifts” from industry figures.

“Amendments to the representation of the people bill which my colleagues and I have tabled are vital safeguards against the wider threat that’s seen [$268 million] come flooding in to build a whole media political complex behind populists in Britain,” said Liam Byrne, MP for Birmingham Hodge Hill and Solihull North and the Labour chair of the business select committee calling for a permanent crypto donation ban. “We simply cannot afford to let our crumbling defenses be undermined any further.”

Source: Liam Byrne

UK lawmakers will reportedly consider amendments to the crypto donation measures next week. Farage announced on Tuesday that he would resign as MP for Clacton in response to reports of the contributions, which included a $6.7 million “gift” from crypto billionaire Christopher Harborne and staff, security, transport and accommodation by George Cottrell, a convicted fraudster involved in a crypto casino.

Farage confirmed in his resignation speech that the UK’s parliamentary standards commissioner was investigating the donations, but said that he did “nothing wrong.” 

Related: Bank of England governor denies Farage lobbying swayed CBDC policy: Report

The Reform UK leader’s resignation has automatically triggered a by-election in the area, where he said “the people of Clacton should be the judges of my actions.” However, the major political parties, including Labour, Conservatives, Liberal Democrats and Greens will reportedly not field candidates for the by-election, with UK Prime Minister Keir Starmer calling Farage’s resignation a “desperate stunt.”

Former Manchester mayor on track to be next UK PM

Andy Burnham, a UK Labour lawmaker who recently won a by-election to become an MP representing Makerfield, is expected to be the country’s next prime minister following Starmer’s resignation. On Thursday, the week-long window opened for Labour MPs to nominate candidates for the party’s next leader, who would also become prime minister.

As mayor of Greater Manchester, Burnham advocated for the city to be a “Web3 powerhouse” and supported using digital technology as an economic development tool. If he receives enough support from Labour MPs to win a leadership bid, he could address the crypto donation ban and the Financial Conduct Authority’s oversight of the industry.

Magazine: Crypto industry looks to stablecoins and DeFi revisions in MiCA 2.0

This summary was created based on CoinDesk Research’s latest report; Digital Assets: Quarterly Review and Outlook, Featuring CoinDesk 5 and CoinDesk 20.

– Joshua de Vos, Research Lead, CoinDesk

Ask an Expert

Q: Is Asia advancing via tokenization and stablecoins rather than spot bitcoin ETFs?

Institutional adoption in Asia is shifting from exploratory pilots to targeted deployment, with tokenization of real-world asset and regulatory stablecoin acting as key entry points for bank and asset managers. Jurisdictions like Hong Kong have introduced comprehensive legislation such as the Stablecoins Ordinance. Requiring full reserve backing, redemption rights and risk controls to make tokenization activity compatible with existing prudential frameworks. Against that backdrop, pure bitcoin ETF plays a smaller strategic role than in North America and Europe.

Q: Are bitcoin ETFs adding income features like other non-traditional ETFs?

The growth of deep, liquid options markets on regulated bitcoin ETFs gives structured product issuers a reliable exchange-traded tool for income and hedging strategies. This is why covered call, buffered and other derivatives-based approaches are being used to generate income from bitcoin ETFs, which do not pay cash distributions or dividends.

Q: How much more capital could flow into bitcoin ETPs from institutions?

The more capital an asset can reasonably attract, the bigger its pool of potential buyers who follow fixed rules like pension plans, retirement accounts and institutional allocators. Right now, retirement systems are the largest pool of this kind of money that still has not meaningfully slowed into bitcoin ETFs. Just a 1% allocation from the $22 trillion US 401(k) and Defined Contribution system would generate $90-$130 billion of inflows, roughly matching the size of the current bitcoin ETF market size.

Perpetual futures—derivatives that typically trade without fixed expiry dates—are increasingly being positioned as a next-generation instrument for markets that never sleep. In a Wednesday post on X, blockchain-focused asset manager Pantera Capital argued that decentralized venues built around onchain infrastructure could make 24/7 perpetual trading materially more competitive with traditional finance by improving continuity of trading and simplifying contract mechanics.

Pantera, which is an investor in the Hyperliquid ecosystem, highlighted Hyperliquid as a leading example of that shift. The firm also pointed to growing interest from established market operators, including NYSE parent Intercontinental Exchange (ICE), and cited data suggesting onchain perpetuals have taken a meaningful share of total perpetual volumes over the last year-plus.

Key takeaways

• Pantera says perpetual futures offer structural advantages—such as 24/7 trading and continuous price discovery—over many traditional derivative formats.
• Hyperliquid is presented as the clearest onchain case study, extending perpetuals from crypto to equities, commodities, and stock indices.
• Pantera claims decentralized exchange (DEX) perpetual volumes have risen to 14% of centralized exchange (CEX) perpetual volumes, up from less than 1% in early 2023.
• Pantera estimates Hyperliquid represents about 40% of onchain perpetual trading volume and generated $13.5 million in weekly fees over the past seven days, according to DefiLlama data.
• Traditional finance firms are moving toward onchain 24/7 markets, with ICE leadership urging regulators to avoid a “level playing field” disadvantage for onchain perps.

Why perpetuals are attracting attention beyond crypto

Perpetual futures have long been a staple in crypto markets, but Pantera’s argument is that their core mechanics translate well to broader financial products. According to the asset manager, onchain perpetual venues benefit from several “structural advantages” relative to conventional derivatives: trading can run continuously, positions don’t face the same kind of scheduled contract expiries, position management can be simpler, and prices can reflect ongoing demand through uninterrupted markets.

The point matters for investors and market participants because it reframes the debate away from whether derivatives can be moved to blockchain and toward how the product’s operational characteristics change trading behavior. If market hours and contract roll cycles are reduced, liquidity dynamics and execution practices may shift—particularly for strategies that rely on staying continuously exposed rather than rebalancing around expiry windows.

Hyperliquid’s expansion and the push toward “housing all of finance”

Pantera specifically singled out Hyperliquid as evidence that perpetuals can spread quickly when the venue’s design supports both trading continuity and a growing menu of assets. The firm said Hyperliquid has gone beyond cryptocurrencies and expanded perpetual futures into equities, commodities, and stock indices as part of founder Jeff Yan’s vision of “housing all of finance.”

That expansion is significant because it introduces a compatibility question that often holds back experimental derivatives: whether an onchain trading venue can support complex, non-crypto underlyings while maintaining the user experience traders expect. By framing Hyperliquid’s asset diversification as a key driver, Pantera is effectively arguing that the perpetual model—paired with always-on trading—can serve as a general-purpose derivatives interface.

Onchain perps gain share, but central venues are watching closely

Pantera’s post also emphasized measurable traction in onchain perpetuals. The firm said DEX perpetual volumes rose to 14% of CEX perpetual volume, up from less than 1% in early 2023, when Hyperliquid first launched. It further claimed Hyperliquid accounts for roughly 40% of onchain perpetual trading volume.

To ground the growth narrative in revenue generation, Pantera cited fees performance: Hyperliquid, it said, generated $13.5 million in weekly fees in the past seven days, using DefiLlama data. While trading volume and fee totals are not the same metric, the combination is useful for readers because it suggests demand is not purely speculative—there is sustained activity sufficient to support protocol revenue.

Still, the numbers also highlight a transition phase. Even at 14% of CEX perpetual volume, the majority of perpetual activity remains centralized. Pantera’s figures therefore portray an emerging competitive set of venues rather than a complete replacement of traditional exchanges.

Traditional finance steps toward 24/7, and ICE calls for regulatory parity

Pantera’s thesis about perpetual futures has drawn parallels with moves already happening in traditional finance. The asset manager pointed to attention from ICE, where CEO Jeffrey Sprecher urged regulators to create a “level playing field” for launching 24/7 onchain perpetual futures contracts.

The underlying tension is straightforward: onchain derivatives aim to bring trading closer to continuous market mechanics, but regulatory frameworks and supervisory expectations may still treat onchain offerings differently than traditional venues. Pantera’s mention of ICE leadership implies that the competitive stakes are large enough that major incumbents are advocating for consistent rules rather than waiting for markets to converge naturally.

Momentum appears across multiple related announcements involving 24/7 trading ambitions. Cointelegraph previously reported that OKX announced plans to launch perpetual futures linked to ICE’s Brent crude and West Texas Intermediate benchmarks, citing a partnership with the exchange operator. Earlier coverage also noted the NYSE’s collaboration with tokenization platform Securitize to develop blockchain-based stock trading infrastructure with 24/7 trading and settlement for Wall Street, as well as ICE’s plans for a tokenized securities venue aimed at 24/7 trading and instant settlement, with stablecoin-based funding and onchain settlement.

Taken together, these developments show that the “always-on” market concept is no longer confined to crypto infrastructure. Instead, it is becoming a reference point for how TradFi platforms consider liquidity access, settlement speed, and funding workflows.

For readers, the next thing to watch is whether regulatory clarity accelerates the move from pilots to scaled onchain perpetual launches across more traditional asset classes. Pantera’s data suggests onchain perps are already carving out measurable share, but the pace of expansion beyond current players will likely depend on how the “level playing field” debate resolves and whether incumbents can align product rollouts with regulator expectations.

Key Takeaways

• PayPal USD arrives on Polygon natively via Paxos for streamlined business transactions.
• The Open Money Stack from Polygon now supports PYUSD alongside wallets and fiat conversion.
• Companies gain access to integrated settlement and cash-out capabilities in one platform.
• Polygon reports handling $2.6 trillion in stablecoin transaction volume.
• Paxos delivers regulated, dollar-backed PYUSD to Polygon’s payment ecosystem.

PayPal’s stablecoin has officially launched on Polygon via a Paxos partnership, marking a significant expansion in its payment capabilities. This development provides companies with native access to PYUSD through Polygon’s comprehensive payment framework. The integration combines regulated dollar-backed settlement with digital wallets, fiat on-ramps, and built-in compliance infrastructure.

Native PYUSD Integration with Polygon’s Payment Infrastructure

Paxos has introduced native PYUSD issuance on Polygon, eliminating the need for bridged token versions. Consequently, companies can now leverage the stablecoin across Polygon’s entire payment ecosystem. This framework enables deposits, transfers, settlements, and fiat conversions within a unified architecture.

The Open Money Stack from Polygon integrates digital wallets, fiat gateway services, regulatory compliance features, and stablecoin settlement capabilities. This unified approach allows companies to minimize the need for multiple payment provider integrations. The infrastructure accommodates various payment methods including card transactions, bank transfers, exchange operations, and stablecoin flows.

This integration specifically addresses the needs of organizations requiring accelerated cross-border transactions and simplified operational workflows. Payroll service providers, digital marketplaces, and money transfer services can leverage PYUSD for global payment processing. These companies can transfer value and convert to fiat without developing proprietary banking infrastructure.

Stablecoin Transaction Volume Highlights Polygon’s Payment Focus

According to Polygon, its blockchain has facilitated over $2.6 trillion in stablecoin transaction volume. This substantial figure demonstrates the network’s established foundation in payment-oriented stablecoin operations. It also illustrates why integrating PYUSD aligns with Polygon’s comprehensive settlement approach.

Major companies including Revolut and Stripe currently utilize Polygon for payment operations. Businesses already operating on Polygon can incorporate PYUSD without overhauling their existing technology stack. This compatibility reduces technical overhead and accelerates implementation timelines.

According to Polygon Labs, the Open Money Stack enables organizations to accept payments and facilitate cross-border fund movement. It also provides currency conversion to local denominations through a single integration point. This architecture creates a more direct connection between conventional financial systems and blockchain-based settlement.

Regulated Stablecoin Settlement Through Paxos

PYUSD is minted by Paxos and maintained through dollar-denominated reserve assets. Paxos states that the stablecoin functions under a national trust charter with OCC oversight. This regulatory framework positions PYUSD among the supervised dollar-backed stablecoins operating in the U.S. market.

The Polygon deployment provides PYUSD with access to another significant blockchain network for payment and settlement operations. This expansion reflects the broader trend of stablecoin integration by payment companies and financial technology providers. Earlier this year in June, Mastercard incorporated PYUSD into its settlement infrastructure across multiple blockchain platforms.

PayPal and MoonPay also unveiled PYUSDx this year for customized stablecoin applications. This platform enables developers to create stablecoins supported by PYUSD reserves without constructing payment infrastructure independently. Collectively, these initiatives demonstrate PYUSD’s strategic expansion into mainstream payment systems.