Labour MPs push for permanent ban on crypto political donations

The UK’s temporary pause on crypto political donations may be about to become a lot more permanent. A group of Labour MPs, led by Liam Byrne, chair of the business select committee, is preparing amendments to the Representation of the People Bill that would transform the government’s stopgap measure into a full legislative ban.

At least 20 Labour MPs have signed on to the proposal, signaling this is more than a fringe concern. The push comes as scrutiny intensifies over exactly who, and what, is funding the rise of newer political parties in Britain.

How crypto landed in the middle of a campaign finance fight

Prime Minister Keir Starmer’s government enacted a temporary moratorium on crypto political donations on March 25, 2026. The intent was straightforward: create breathing room to assess the transparency risks before the next major electoral cycle.

The backdrop here matters. Reform UK received roughly £15 million from crypto-linked donor Christopher Harborne, and a separate £4 million contribution from Ben Delo, co-founder of crypto derivatives exchange BitMEX.

The Electoral Commission currently classifies crypto donations as non-cash contributions, subjecting them to standard permissibility checks above £500. Critics inside Parliament argue that framework was designed for a pre-crypto world and simply was not built to handle assets that can move across borders without the friction that flags foreign interference in conventional finance.

What the proposed legislation actually does

The Byrne-led amendments go further than just banning crypto donations outright. Labour MPs are also pushing to reduce national campaign spending limits from £34 million down to £24.4 million, a cut of roughly 28% that would constrain well-funded insurgent parties regardless of their funding source.

The broader legislative push is also shaped by the Rycroft Review, which examined foreign interference risks in UK electoral processes and flagged digital assets as a particular vulnerability.

The proposed amendments also call for increased oversight of funding from new political parties specifically, a provision that would disproportionately affect parties that have scaled quickly on the back of novel funding sources.

What this means for crypto’s role in UK politics and markets

The immediate market reaction to the amendment proposal has been muted. Bitcoin and major tokens have not moved materially on the news, which tracks with how crypto markets typically respond to jurisdictional regulatory announcements that stop short of direct trading restrictions.

The Representation of the People Bill still has a legislative road to travel before any of these amendments become law. But with 20 signatures already on record and a formal review backing the foreign interference concerns, the direction of travel looks clear.

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