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Spectator
16 hours ago
- Spectator
Britain needs to embrace crypto with its own Genius Act
In proposing to sell the government's £5 billion hoard of Bitcoin – accumulated from confiscating the proceeds of crime – Rachel Reeves has earned some keen supporters. But the Chancellor should resist the temptation. It wouldn't be an error quite on the scale of Gordon Brown's sale of half of Britain's gold reserves in 1999 – that occurred right at the bottom of a bear market in gold, while Bitcoin in recent weeks has been trading at record highs. Nevertheless, Reeves would be missing out on the opportunity to build a Strategic Crypto Reserve which could turn out to be many times more valuable in the future. By backing cryptocurrencies rather than disposing of them, she could help the City of London capture an important market and recover some of its long-lost pre-eminence in financial transactions. While Reeves is contemplating cashing in her Bitcoin, the US is going in a very different direction. This month Congress established the GENIUS Act (Guiding and Establishing National Innovation for US Stable coins), which will regulate and encourage the use of 'stable coins' – cryptocurrencies backed by liquid assets such as dollars or short-dated Treasuries. The act will address many concerns about criminals' use of cryptocurrencies by incorporating strong consumer and anti-money laundering provisions. It will mandate the reporting of any suspicious activity involving cryptocurrencies, and ensure that they are backed by low-risk investments such as the dollar, or government bonds. There is an expectation, too, that President Trump will sign an executive order to allow the pension plans of millions of Americans to hold cryptocurrencies. The US approach towards cryptocurrencies is both liberating and reassuring for consumers. The Genius Act is a recognition of the massively-expanding crypto market – worth $5.7 billion globally last year – and an effort rightfully to bring it inside the regulatory tent for the first time, rather than to leave it at the mercy of private operators. It introduces safeguards which might prevent a future scandal along the lines of the discredited scheme operated by the now-jailed Sam Bankman-Fried. It introduces supervision to ensure that those trading stable coins retain adequate liquidity, and introduces a proper framework for dealing the currencies. Many people remain deeply suspicious about cryptocurrencies and will balk at the idea of governments having anything to do with them. Yet they are not going to go away. There is a generational divide in attitudes towards cryptocurrencies. While many older people continue to see them as a scam, many younger people have a similar attitude towards fiat currencies – paper money issued by governments and central banks which is not backed by gold or any other valuable commodity. It is time to recognise that fiat currencies are not the only ones that can be used in commercial transactions, and there is a good reason to explore alternatives. Blockchain, the technology behind cryptocurrencies, is increasing the speed at which transactions can take place. As for the argument that Bitcoin is not a proper currency because of the volatility in price, this needs to be absorbed as a warning to investors. It should not be used as a reason to prevent holding it, say, in a pension fund. Many corporations, too, once had reservations about cryptocurrencies yet have since been converted. Those who decline to be involved face losing out. Look at analytics company MicroStrategy, whose shares have increased fourfold over the past year as it has become the largest corporate holder of Bitcoin. The choice for our own government lies between taking action to incorporate cryptocurrencies into mainstream finance – or to watch as the US and others take the initiative. We need to be part of cryptocurrency regulation just as we were part of the post World War II Bretton Woods agreement, which established a regime for creating exchange rate stability, and which also established the International Monetary Fund (IMF) and the dollar peg. Stable coins, in fact, are becoming a new dollar peg. One of the consequences of the GENIUS Act, if it is not followed by a similar move here, will be to boost the value of the dollar. In her Mansion House speech, Rachel Reeves rightfully blamed excessive regulation for stifling growth. Yet as well as restricting and encumbering, well-designed regulations can free up markets and encourage growth. Reeves should be looking into a UK equivalent of the GENIUS Act. But in the meantime she should signal her intentions towards cryptocurrencies by retaining the government's £5.4 billion of Bitcoin and have it managed by a City firm. If Reeves will not do this, it is very fertile ground for the Conservatives. Kemi Badenoch will be watching the GENIUS Act with great interest. Fail to embrace cryptocurrency now, and Britain will once again have missed out on the chance to take a lead in an emerging industry. It is critical that the City of London should not lag behind major structural changes in the world or finance. Creating a proper platform in London for trading cryptocurrencies could be the beginning of the City's revival.
Daily Mail
2 days ago
- Daily Mail
Kamala Harris' former advisor left flustered after being asked simple question about economy
A former senior adviser to Kamala Harris was left visibly flustered during a live television segment after he failed to accurately answer a basic question about the current U.S. inflation rate. During a Friday appearance on Fox News ' America Reports, anchor Sandra Smith pressed Mike Nellis, once a Senior Advisor to former Vice President Harris, on the latest economic data, asking, 'Do you know what the inflation rate is?' 'Yeah, it's like about three or four percent,' Nellis responded. But Smith quickly fired back, correcting him. 'No. It's below three. And it's been a long time since it's gotten there. I mean, you're looking at 2.5 percent inflation now.' According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 2.7 percent year-over-year in June. While slightly above Smith's figure, the inflation rate has remained below 3 percent for several consecutive months, reflecting a significant cooldown from its 9.1 percent peak in June 2022 - the highest in four decades, according to the Bureau of Labor Statistics. Despite the data, Nellis insisted that inflation continues to rise. 'Inflation is still going up,' he said. 'And it's rising, according to the latest stats.' 'That's not the case,' Smith countered. 'Inflation has come down. Inflation by nature is growth in prices, but the growth has slowed.' Earlier in the segment, Nellis blamed Republicans and President Donald Trump for ongoing economic concerns. 'Right now the president of the United States is Donald Trump. Republicans are in control of Congress,' Nellis said. 'They're currently in recess rather than doing anything about inflation.' He went on to claim that beef and alcohol prices hit record highs over the July 4 weekend and criticized Trump's promises to reduce prices immediately after taking office. 'Donald Trump promised to make grocery prices go down on day one,' Nellis said. 'We're six months in and everything's more expensive.' Smith pushed back, noting that 'prices have definitely come down,' but that 'they can go down more.' Meanwhile, some economic indicators suggest relief for American consumers, according to AAA, average gas prices hit a four-year low in June. The tense exchange came just days after the Democratic Party had its own messaging blunder when its official X account posted a graphic blaming inflation from 2021 to 2024 on 'Trump's America' - even though Joe Biden and Harris were in charge the whole time. The post later deleted. The White House later shared the same graphic again, this time fixing the mistake and crediting the Biden administration. That slip-up highlights the tough spot Democrats are in as they face growing criticism over the party's handling of the economy. A new Wall Street Journal poll this week showed that 63 percent of voters view the Democratic Party unfavorably - the worst rating they've seen in 35 years. Just 33 percent said they view the party favorably, and only 8 percent said they had a 'very favorable' view, according to the poll. In contrast, Republicans, while also viewed more unfavorably than favorably, had stronger numbers - sitting at just 19 percent. President Trump's job approval stands at 46 percent, higher than the 40 percent approval rating he received at the same point in his first term, according to the WSJ. When asked which party they trusted more on major issues such as inflation, tariffs, and immigration, voters consistently favored Republicans. 'The Democratic brand is so bad that they don't have the credibility to be a critic of Trump or the Republican Party,' Democratic pollster John Anzalone, who conducted the WSJ poll with Republican pollster Tony Fabrizio, said. 'Until they reconnect with real voters and working people on who they're for and what their economic message is, they're going to have problems.' Republicans currently hold a financial edge as well, with campaign filings showing the Republican National Committee has over $80 million on hand, compared to $15 million held by the Democratic Congressional Campaign Committee, the WSJ reported.
Daily Record
2 days ago
- Daily Record
Andrew Cavenagh pushed the button on Rangers takeover after undercover spying mission on the Copland Road
It was after this spying mission that Cavenagh opened the talks which would lead to his successful takeover in May of this year Andrew Cavenagh decided to push the button on his multi-million pound buy out of Rangers after going deep undercover to mingle with match day punters in the Copland Road stand. The health insurance tycoon made the secret trip to Glasgow on November 23 last year, battling through a snow storm to buy a ticket for a 1-1 draw with Dundee United. And it was after this spying mission that the American businessman opened the talks which would lead to his successful takeover in May of this year, along with his backers from the San Francisco 49ers The story of Cavenagh 's first ever trip to Ibrox has been revealed by Paul Murray in part of an in depth exclusive interview with our groundbreaking Hotline Live show, which is available to view online. And Murray, who helped Cavenagh and his consortium pull the deal together from the inside, has told how he knew the Americans were destined to take control from the moment the main man turned down a VIP seat in the directors' box to sit among the fans instead. Murray revealed: 'I met Andrew for the first time on a Zoom call in October last year, so nine months ago. We had a bit of a chat - nice guy - and he was then coming to London a week later. 'So I flew down to London and had lunch with him in central London. We had a really good chat. 'He didn't actually mention the 49ers at that time but he was actually with a guy from Leeds so I kind of figured out that there was something else maybe going on. 'We had a really good chat and my first impressions were, 'Really nice guy, very easy to talk to,'. 'As we've been discussing, over the last 20 years I've met a lot of people who want to invest in Rangers and who come forward - I think we all know some of the people we've just been mentioning! 'Andrew was different. You just got a sense immediately this guy is, first of all, he's a very successful businessman in his own right. A very serious guy but also a nice guy and also engaged. 'I talked him through the history of the club, the last 15 years and some of the things that had happened. You could tell he was really engaged. He obviously knew a lot of the things we were talking about. 'As it happened, because the guy was there from Leeds, I did take the opportunity of mentioning the Battle of Britain from 30 years ago which they were quite amused by. 'I said, 'That shows you where Rangers were 30 years ago. Before the English Premier League came into existence, we were, if not the biggest club in Britain, certainly one of the biggest clubs in Britain,'. So they were actually quite interested in that. 'I think the two things which really struck me about Andrew that day were, first of all he was really engaged and obviously really interested in what I was saying but also we were playing a game against Hearts at Ibrox a couple of days later on the Sunday. 'He actually said to me, 'I think I'll just fly up to Ibrox and go to the game,'. 'I asked if he wanted me to try to speak with someone and he said, 'No, I'll just get a ticket and I'll just go,'. 'As it turned out, for various reasons he wasn't able to go as he had some family stuff on but he then contacted me about a week later and said he wanted to go to the Dundee United game, which was in the middle of November. 'Again, I asked if he wanted me to help and he said, 'No, I'll just go and get a ticket - a normal ticket for any area of the ground,'. I think he actually went into the Copland Stand. 'But I thought that was quite interesting. A guy with that wealth and he just thought, 'I'm going to buy a ticket,'. 'He flew up to Glasgow, bought a ticket on his own. He went with a couple of other guys and you might remember it was a really bizarre game because it was meant to be a three o'clock kick-off on the Saturday and it was really bad weather. 'It was the middle of November but there were snow drifts and crazy weather to the point that Dundee United couldn't get down the A9. 'He actually contacted me to say, 'When does the game start?'. 'I said, 'I've just looked and apparently it's been delayed until four o'clock!'. 'So it was a really weird day and Andrew was basically walking about the stadium, looking at the stands and nobody knew who this guy was. 'I thought it was actually really interesting that a guy like that would take the time - because normally these guys want to go to the directors box as VIPs - but this guy was prepared to put on his work clothes if you like and just go and look at it. 'The other thing that happened that day was there were quite a lot of fan protests as well as having the snow drifts to contend with. But it obviously didn't put him off.' Now, a decade after helping Dave King take control of Ibrox in a boardroom purge, Murray believes his club has been passed into the best possible hands. He said: 'There are no guarantees. But I'm hugely excited. 'I spent a good bit of time with Andrew in the early days - I don't know Paraag just as well but we did have a couple of meetings - and I think these guys are going to be great for the club. 'I think, in a funny kind of way, the fact that they are not Rangers fans is a good thing because we've had Rangers fans on the board for a long time and it is difficult. 'It's hard to convey when you are a fan but you are also on the board as a custodian, you feel the weight of expectation on your shoulders. 'In fact, my very last game on the board of directors was just before Steven Gerrard came, when we lost 5-0 at Celtic Park and Celtic won the league. 'I remember leaving that day and I was actually finished. I just had to resign because I was emotionally spent. You sit there as a fan and as a director and it's hard to take. 'These guys are clearly going to be invested in the club from an emotional point of view but they are a bit more detached. And that gives them more objectivity which is a good thing. 'I don't know Paraag as well as Andrew but I think they are quite a complimentary duo and it's maybe this east coast west coast thing. Andrew is obviously from Philadelphia and I think Paraag is from California. 'So they have slightly different styles and backgrounds but I think they are quite complementary.'
