Berliner Boersenzeitung - Reform UK Deputy Leader Richard Tice Lobbied Bank of England on Crypto After Major Donations

Letters released by the Bank of England reveal that Reform UK deputy leader Richard Tice lobbied the central bank for a more permissive regulatory framework for cryptocurrency following substantial donations from billionaires in the digital asset industry. The correspondence, obtained by The i Paper, shows Tice urging officials to adopt a "light touch" approach to stablecoin regulation, arguing that Britain risked losing financial business to the United States if it failed to act quickly.

The documents indicate that Tice intervened in November of last year, approximately four months after Reform UK received a £9 million donation from cryptocurrency investor Christopher Harborne. At the time, this contribution stood as the largest single donation to a political party from a living donor. The financial relationship deepened in September of this year when Harborne and another crypto billionaire, Ben Delo, each donated £36 million to Reform UK.

The release of these private files is likely to intensify scrutiny over the relationship between Reform’s financial backers and the party’s stance on digital currency regulation. Political opponents have long argued that large donations from wealthy individuals can buy undue influence in politics. However, Tice stated that his intervention was consistent with a longstanding position supporting financial deregulation and denied acting on behalf of any specific donor.

In a letter dated November 27 to Sam Woods, chief executive of the Bank’s Prudential Regulation Authority, Tice expressed concern that Britain was falling behind other nations in creating an attractive market for stablecoins. He pointed to legislative developments in the United States as evidence of this gap. "It will not have escaped your attention that in the meantime the US has already passed the GENIUS Act and that US dollar-backed stablecoin issuance is now over $250bn," Tice wrote.

Tice, who also serves as Reform’s spokesman for business, trade, and energy policy, noted that London remains the world’s largest foreign exchange market. He questioned why the UK was not leading global thinking in this area despite its financial stature. He pressed the Bank to rethink rules on stablecoins to ensure regulation did not discourage investment.

Beyond cryptocurrency, Tice used the correspondence to advocate for broader deregulation of the UK’s financial sector to enhance global competitiveness. He criticized the Bank’s quantitative easing and tightening policies, arguing they were costing taxpayers billions through interest payments and losses on bond sales. In a notable assertion regarding the party's political standing, Tice told officials: "You will note that based on current opinion polls, Reform UK is set to form the next government."

The letters also highlight interactions between Reform leaders and Bank of England Governor Andrew Bailey. Records show that Tice and Reform leader Nigel Farage held a private meeting with Bailey in September 2025. Following the meeting, both men confirmed that cryptocurrencies were discussed. Tice wrote again to Bailey’s deputy, Sarah Breeden, on December 17, 2025, reiterating calls for a looser regulatory framework. He argued that a system upholding financial stability while encouraging competitiveness was essential for the UK to retain leadership in the field.

In response to the lobbying efforts, the Bank of England stated that it supported stablecoins and was already developing a regime designed to allow the sector to grow. The correspondence was made public after Conservative chairman Kevin Hollinrake asked the Treasury about Reform’s representations regarding cryptocurrency policy.

Tice defended his actions in comments to The i Paper, stating he had been challenging the Bank’s decisions on quantitative easing and tightening since early 2024. He claimed pride that these challenges would save billions for taxpayers after the Governor agreed to stop quantitative tightening. "I have been actively shouting from the rooftops to deregulate the financial sector," Tice said, noting an 80 percent collapse in new stock market listings in recent years. He described stablecoins as a small part of broader suggestions to help growth and innovation.

Pro-crypto policies were previously a central pillar of Reform’s economic plans. Last year, Farage announced the party would launch a "crypto revolution" in Britain, while Tice argued the UK should embrace cryptocurrency by making it easy, cheap, transparent, and tax-advantageous. However, Reform has been less vocal on the issue recently amid criticism from opponents regarding its donations from crypto billionaires.

Reform has denied that donors expect anything in return. Farage stated in defense of the £72 million in September donations: "You know what Ben Delo and Christopher Harborne want? Nothing." Harborne, who owns a reported 12 percent stake in Tether, the company behind the stablecoin USDT, said he gave money out of admiration for Farage and did not expect anything in return.

The financial ties have also drawn attention to Nigel Farage’s personal finances. Farage received a separate £5 million payment from Harborne in April 2024, which he described as a personal gift to fund private security and a reward for Brexit. Parliament’s standards commissioner is currently investigating whether Farage should have declared the money. Farage could face another by-election in his Clacton constituency if found to have broken rules by not declaring the gift.

While the Conservatives championed making the UK a "global cryptoasset technology hub" under Rishi Sunak, current leader Kemi Badenoch has not set out detailed policies on cryptocurrencies. Labour remains supportive of crypto innovation and the Bank’s work on a digital pound but has taken a cautious approach to regulation. New laws for cryptocurrency businesses are scheduled to come into force in 2027, with the government seeking to balance consumer protection with investment encouragement.

Stablecoins, which are linked to traditional currencies like the US dollar and backed by reserves, are primarily used for buying crypto assets or making cross-border payments. Supporters argue they can make digital payments faster and cheaper, while critics warn of risks if issuers do not hold sufficient reserves or face mass redemption requests.

(B.Hartmann--BBZ)