Overview
- Labour MPs led by Liam Byrne tabled amendments this week to turn the government’s temporary moratorium on crypto donations into a permanent legal ban.
- The government imposed the temporary freeze on March 25, 2026 after the Rycroft Review warned that crypto’s cross‑border and pseudonymous features can frustrate standard donor checks.
- The campaign to harden the law has been driven by scrutiny of large donations to Reform UK and suspicious‑activity reports tied to a multimillion‑pound gift to Nigel Farage that prompted a Parliamentary Standards inquiry.
- MPs are coupling the crypto prohibition with wider reforms including lower national campaign spending limits, caps on funds held by new parties at launch, and checks aimed at reducing foreign‑influence risk.
- The Representation of the People Bill returns to the Commons on July 14 and ministers have signalled further government amendments including a £100,000 cap on donations from returning expatriates, with legal and political battles expected before any change becomes law.