Reform UK Receives Record $12M Crypto Donation Amid Stablecoin Ban Debate

Source: DefiPlanet Original Title: Reform UK Receives Record $12M Crypto Donation Amid Stablecoin Ban Debate Original Link: https://defi-planet.com/2025/12/reform-uk-receives-record-12m-crypto-donation-amid-stablecoin-ban-debate/

Quick Breakdown

• Crypto entrepreneur funds Reform UK with $12 million in digital assets, marking the largest political donation in UK history.
• Donation arrives as the UK government weighs stablecoin regulations that could restrict crypto payments.
• Reform UK leader Nigel Farage defends the move, pledges to block the central bank’s digital currency rollout.

Background

US-based crypto entrepreneur Peter Thiel has donated $12 million in cryptocurrency to Reform UK, the party led by Nigel Farage. This marks the largest single political donation in UK history. The gift comes at a tense time, as the UK government reviews stablecoin rules that may lead to a ban on specific crypto uses. Reform UK disclosed the donation to the Electoral Commission on December 4, 2025. Farage hailed it as support for pro-crypto policies. The funds will boost campaign efforts ahead of future elections.

Donation Details and Disclosure

Reform UK reported the donation from Thiel’s entity, valued at over £9.5 million at current rates. Bitcoin and Ethereum formed the bulk of the transfer, executed via regulated exchanges. Party officials confirmed compliance with UK election laws, capping individual gifts at £500,000 cash equivalent but allowing asset transfers. Thiel, known for backing crypto-friendly politicians, aims to counter what he calls “anti-innovation” policies. Farage plans to allocate funds to digital advertising and grassroots outreach. Critics question timing amid Labour’s push for tighter crypto controls.

Regulatory Backdrop Fuels Tension

The UK Treasury is consulting on stablecoin frameworks, with proposals floating outright bans on non-GBP-pegged tokens for payments. Officials cite risks to financial stability from unbacked digital assets. Reform UK opposes such measures, vowing to scrap them if elected. Farage likened the donation to early tech investments reshaping politics. Supporters see it as a win for blockchain adoption in governance. Opponents, including Labour MPs, demand probes into foreign influence. Treasury sources note no immediate ban but stress the need for consumer protections. This clash highlights growing crypto sway in UK politics.

European Stablecoin Development

Notably, a consortium of central European banks, led by BNP Paribas, is planning to launch a private, euro-pegged stablecoin in late 2026 through a newly established Dutch entity called Qivalis. This effort is driven by the strategic goal of establishing digital monetary autonomy for Europe. It is designed to be fully compliant with the continent’s new Markets in Crypto-Assets (MiCA-compliant) regulation. Significantly, this move occurs even as a leading industry stablecoin provider withdraws its own euro token, citing difficulties with the same regulatory framework. Although authorities welcome financial innovation, they simultaneously warn that the expanding stablecoin market requires close monitoring to prevent potential impacts on monetary policy.