A group of Labour MPs led by Liam Byrne want to ensure that crypto never becomes the preferred currency of British political fundraising. They’ve tabled amendments to the Representation of the People Bill that would turn the UK government’s temporary freeze on cryptocurrency donations into a permanent ban.

The timing is not subtle. Reform UK has been swimming in private donations, roughly £9 million in the first quarter of 2026 alone, outpacing both Labour and the Conservatives. A significant chunk of that money came from crypto entrepreneurs, and Labour lawmakers are making the argument that digital assets are too opaque to belong anywhere near democratic elections.

How we got here

The UK government enacted a temporary moratorium on political donations made in crypto assets on March 25, 2026. That decision came alongside a £100,000 cap on donations from overseas British voters, both measures shaped by the Rycroft Review’s findings on foreign interference risks in political finance.

Reform UK sits at the center of this storm. BitMEX co-founder Ben Delo contributed £4 million to the party, while Christopher Harborne’s total donations reached £15 million over the preceding year.

The Electoral Commission has already updated its guidance, classifying cryptocurrency donations as non-cash contributions subject to standard permissibility checks above £500. But Labour MPs clearly view that as insufficient.

The permanent ban push

As of July 9, 2026, Labour MPs are advancing amendments that would embed a crypto donation prohibition directly into law. Back in January 2026, Labour select committee chairs wrote a letter advocating for an outright ban on cryptocurrency donations in the Elections Bill, citing foreign interference concerns.

Opponents of the ban, including industry players like Coinbase, have pushed back against what they see as an overreaction. Their position is that blockchain technology actually offers more transparency than traditional finance if regulators are willing to invest in the tools to monitor it.

What this means for investors

The immediate market impact appears minimal. No significant price swings in Bitcoin or major altcoins have followed the amendment announcements.

For crypto firms operating in the UK, the Rycroft Review, the Electoral Commission’s updated guidance, the temporary moratorium, and now these permanent ban amendments form a clear trajectory. Each step makes the next restriction easier to justify politically.