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The UK has announced a ban on cryptocurrency donations to political parties. Meanwhile, lawmakers in the US have introduced a bill aimed at political trading on prediction markets. In both countries, digital finance and politics are facing closer review. Both developments came this week and drew attention to gaps in rules around money, markets, and public office.
Prime Minister Keir Starmer said on March 25 that political parties in the UK will no longer be allowed to accept donations made in cryptocurrency. The ban applies to donations of any size, including smaller transfers that could previously fall below standard reporting thresholds.
The government said it will amend the Representation of the People Bill to put the change into law. Once the rules take effect, parties and other regulated bodies will have 30 days to return any crypto donations received from March 25 onward. After that period, criminal penalties may apply.
Furthermore, the move is not being presented as a permanent ban. Philip Rycroft, the former senior civil servant who led the review behind the measure, said the step is a pause while regulators work on systems that can verify the source of crypto funds with the same standard used for bank transfers.
Alongside the crypto measure, the government also introduced a £100,000 annual cap on political donations from British citizens living abroad. That replaces a system that had allowed much larger donations from overseas electors.
The decision followed the Rycroft Review, which the government commissioned in December 2025. The review came after former Reform UK MEP Nathan Gill was convicted of accepting bribes to promote pro-Russian statements while serving in public life.
According to the review, foreign interference in British politics is "real and persistent." It named Russia, China, and Iran as active threats. It also said crypto can make it harder to trace the true source of political donations, especially when funds move from anonymous wallets.
Housing Secretary Steve Reed told MPs that "the anonymity inherent in crypto transactions could make it easier to mask the origin of donations and evade robust checks on the true source of funds." He also said that the route for illicit money was "unacceptable."
Reform UK is the only major British party known to have openly welcomed crypto donations. Nigel Farage said last year that the party would accept Bitcoin. Later, he said Reform had already received "a couple" of crypto donations.
The party has said it does not accept anonymous donations. It also said any crypto contribution is converted into cash by a regulated third party. Farage said the party’s checks on crypto donations were stricter than the normal Electoral Commission rules.
The broader donation cap also adds pressure. Reform UK received a record donation from Christopher Harborne, a British businessman based in Thailand. Under the new overseas limit, future donations on that scale would no longer be allowed.
Also Read: US Sanctions UK Crypto Exchanges Over Iran IRGC Fund Flows
Meanwhile, in the US, Congressman Adrian Smith and Congresswoman Nikki Budzinski introduced the PREDICT Act. The bipartisan bill would bar members of Congress, the president, the vice president, senior staff, political appointees, spouses, and dependent children from trading on prediction markets tied to political events, policy decisions, or government actions.
The bill is aimed at the use of non-public information for financial gain. Lawmakers backing the measure said officials may hold early knowledge about legislation, voting outcomes, or executive actions that could affect trades on prediction market platforms.
Violations would bring a civil penalty equal to 10% of the transaction value, along with full repayment of any profits earned. Budzinski said, "The American people are tired of politicians using their influence for personal gain, and the rise of prediction markets has made those concerns even more relevant."
Both the UK move and the US bill focus on different parts of digital finance. Even so, each one seeks tighter rules where politics, money, and new financial tools meet.
