A cross-party UK parliamentary committee has called for an immediate moratorium on cryptocurrency donations to political parties, warning they pose an "unnecessary and unacceptably high risk" to democratic integrity and leave the door open to foreign financial influence.
The Joint Committee on the National Security Strategy published the recommendation Wednesday as the Representation of the People Bill began its Committee Stage in the House of Commons.
The report lands in direct political context. Reform UK - the only major UK party currently accepting cryptocurrency - received $12 million from Tether-linked investor Christopher Harborne in Q3 2025, followed by a further $4 million in Q4.
The donations, which triggered investigation requests from rival parties and contact with the Financial Conduct Authority, are cited in the report as evidence of urgency.
What the Committee Wants
The committee calls for several amendments to the Representation of the People Bill.
These include a binding moratorium on crypto donations until the Electoral Commission develops statutory guidance; a requirement that overseas donors hold UK-registered HMRC assets for at least 12 months before donating; and reduction of the political donation disclosure threshold from £11,180 to £500.
The committee also wants donors to make an explicit legal declaration that they are not acting on behalf of a foreign entity, and for prison sentences for serious political finance offences to increase to three years.
Read also: Early Ethereum Whale Buys $19.5M In ETH
New National Enforcement Body
Responsibility for overseeing political finance is currently spread across the Electoral Commission, Metropolitan Police, MI5, Counter Terrorism Policing, and the National Crime Agency.
The committee describes this arrangement as having "inadequate" accountability and recommends consolidating it into a dedicated Political Finance Enforcement Unit housed within the NCA.
Industry Pushback
Not everyone supports a blanket ban. Ian Taylor of CryptoUK argued that crypto donations can be transparent within properly regulated frameworks.
Tom Keatinge of RUSI's Centre for Finance and Security warned that an outright prohibition could push activity offshore, leaving underlying risks unaddressed.
Committee chair Matt Western MP acknowledged these tensions but argued urgency outweighs the risks of inaction.
Read next: Why Congress Takes On Tokenization