- Wharton manages the UK Cryptoasset Business Council
- House of Commons demands crypto trading be regulated as gambling
- Kraken, Galaxy Digital lobbyists attended a meeting between the UKCBC and the trade minister
James Wharton, Boris Johnson’s former campaign manager, is being questioned about his involvement with crypto firm lobbyists, The Guardian reported on June 18. He is a member of the House of Lords (peer) and a former member of the UK Parliament, as well as chairman of the Students Office.
Members of the House of Lords are sometimes referred to as peers. Most members are Life Peers although about 100 sit by virtue of hereditary title.
Wharton founded NorthPoint Strategy, a company that aims to assist in “navigating the complexities of Whitehall and Westminster.” He’s a majority shareholder in it. It’s focused on highly-dynamic, disruptive sectors. Wharton manages the UK Cryptoasset Business Council (UKCBC) as well.
Labour party alleges cronyism
The UKCBC has been contacting civil servants and ministers and meeting with senior ministers and Treasury officials in an effort to put the UK on the map of global crypto hubs as regulations around the budding sector develop.
The Labour party termed Wharton’s appointment to the student organization “another example of cronyism.” Matt Western of the Labour Party commented:
This is the latest in a long line of examples of the chair of the Office for Students putting his political interests above the interests of students. Students rightly expect swift action from the independent regulator on matters that affect them the most. It is less than clear how Lord Wharton’s additional commitment helps further those interests.
A surge in crypto lobbying
Opponents of cryptocurrencies alarm about the increased lobbying around the crypto sector. A House of Commons committee has demanded crypto trading be regulated as gambling. According to an MP committee, Bitcoin and other cryptocurrencies have no real value and present a considerable risk to traders.
The UKCBC was established in 2022 and employs former Tory aides and officials. There is no information about the companies behind it, only a list of “associated firms”. NorthPoint Strategy currently manages the UKCBC. It is led by former executives of Pepper Shackleton Wellard (PSW), a public relations consultancy. One of them is Simon Jennings, director of the UKCBC and an ex-chief of staff to a Tory minister.
According to notes from a meeting between Treasury officials and the UKCBC, the council is interested in crypto education and policy.
No info about sponsors or members
The council provided evidence after the Treasury committee made an inquiry, but this didn’t include information about members or sources of funds.
The UKCBC indirectly invited former financial secretary Andrew Griffith to a drinks reception on the terrace of the House of Commons. The council also hosted a Christmas party in a pub for all MP staff.
Lobbyists from crypto firms attended govt meeting
Lobbyists for Kraken, Luno, Galaxy Digital, and BCB attended a meeting between the UKCBC and trade minister Dominic Johnson last month. There was also a meeting between Treasury officials and the UKCBC following correspondence with a Treasury director of payments and fintech.
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