Key facts
- Tether, the issuer of the USDT stablecoin, is a major buyer of gold and holds significant US government debt.
- Christopher Harborne, a substantial shareholder in Tether, made donations totaling £15 million to Nigel Farage's Reform party.
- Nigel Farage discussed stablecoin regulation with Bank of England Governor Andrew Bailey.
- Harborne previously acted as a registered lobbyist for a group that included Tether as a founding member.
- The value of Harborne's Tether stake reportedly increased significantly following US regulatory changes.
Tether, the company behind the world's largest stablecoin USDT, has emerged as a significant player in the global financial system, notably as a major purchaser of gold and holder of US government debt. The firm, which employs around 200 people, operates with characteristics akin to a private central bank.
Questions surrounding Tether's influence have been amplified by its connection to Christopher Harborne, a significant shareholder who has made substantial donations to Nigel Farage's Reform party. Harborne provided £9 million in cash to Reform in August, followed by an additional £6 million in October and January, all declared and representing the largest party donations in British history. Previously, he had given Farage a £5 million personal gift, which was subject to parliamentary investigation.
Farage and Harborne have stated that these donations and gifts were made without any attached conditions. However, the timing of these financial contributions has drawn scrutiny, particularly in light of discussions between Farage and Bank of England Governor Andrew Bailey regarding cryptocurrency and stablecoin regulation. Farage has been a vocal proponent of London embracing cryptocurrencies and becoming a global trading center for digital assets.
Reform UK's policy proposals, including draft legislation on cryptoassets, have referenced stablecoins. The Bank of England's consultation on stablecoin regulation, which opened in November, is a key focus for the party. Andrew Bailey, who also chairs the international Financial Stability Board, has previously expressed concerns about the potential destabilizing effects of stablecoins if not adequately regulated.
Harborne's past role as a registered lobbyist for the Digital Currencies Governance Group, a group founded by Tether, further links him to the company's regulatory interests. The article notes that the relaxation of US stablecoin regulation last July coincided with a significant increase in the value of Harborne's Tether stake, occurring in the same month as his record £9 million donation to Reform.