Seven Labour MPs who chair parliamentary committees have called on the UK government to prohibit cryptocurrency donations in the forthcoming Elections Bill.
The MPs warned that crypto donations could weaken transparency rules and open the door to foreign interference in British elections.
The proposal would directly affect Reform UK, which became the first UK political party to accept crypto donations in May 2025.
The committee chairs wrote to the government arguing that digital assets undermine traceability and enforcement in political finance.
Crypto can obscure the true source of funds, enable thousands of micro donations below disclosure thresholds, and expose UK politics to foreign interference.
Liam Byrne said.
The letter added pressure on the Labour government, which has been considering a ban on crypto political donations since mid-2025.
Government sources said ministers see risks to electoral integrity but believe implementation challenges mean a ban may not appear in the Elections Bill.
Reform UK leader Nigel Farage has promoted crypto donations as part of a wider plan that includes a UK bitcoin reserve and tax cuts.
Scrutiny increased after Reform UK received a record £9 million donation from crypto investor Christopher Harborne, although it was made in fiat currency.
The debate comes as the UK advances broader crypto regulation, including new rules overseen by the Financial Conduct Authority.
The proposed restrictions would contrast with the United States, where crypto-linked political spending remains legal at the federal level.
At the time of reporting, Bitcoin price was $90,809.91.