Farage has been reported to the Independent Parliamentary Standards Authority (IPSA) over allegations that he pressed the Bank of England on stablecoin regulation in a way that would advantage his party's biggest financial backer.
Labour MP Tulip Siddiq filed the complaint, according to Decrypt's reporting. The core claim is that Farage advocated for policy positions favorable to a Tether investor while that same figure was funding Reform. The allegation touches on a live regulatory question: how the UK should treat stablecoins like Tether (USDT), which trades around $0.998818 and ranks third globally by market cap.
The complaint and IPSA process
IPSA enforces the MPs' Code of Conduct, which requires Parliament members to register financial interests and avoid using their position for personal gain or to benefit donors unduly. The watchdog can investigate whether Farage failed to disclose material links between his lobbying efforts and his party's funding sources.
Farage's interactions with the Bank of England are relevant because the central bank advises the Treasury on stablecoin regulation. If Farage pushed for rules that happened to benefit a major Reform donor, the question becomes whether he disclosed that potential conflict and whether his advocacy crossed into improper conduct.
Stablecoin regulation in flux
The UK has been drafting its approach to stablecoins for over a year. The regulatory framework is not yet locked in, meaning decisions made now on reserve requirements, issuer licensing, and payment settlement could shape which firms thrive. Tether's position in the UK market depends partly on how rules develop.
The complaint arrives as Parliament debates broader financial regulation. Farage's influence on Bank of England messaging or policy advice would carry weight precisely because the rules remain unsettled.
What happens next
IPSA will decide whether the complaint meets the threshold for investigation. If it proceeds, the watchdog can compel documents, interview witnesses, and issue findings. The timeframe is typically measured in months. A substantiated breach could result in sanctions ranging from a reprimand to suspension.
For Reform and Farage, the complaint creates political friction regardless of IPSA's outcome. It puts pressure on the party to clarify its funding relationships and to explain any party leader engagement with regulators on crypto policy. The allegation also reinforces a broader pattern in UK politics where cryptocurrency and stablecoin interests intersect with donor networks, a tension that regulators and lawmakers are still learning to navigate.