South Africa's central bank chief criticises crypto lobbying efforts

Trump’s presidency officially started on 20 January 2025, and his stance on the crypto industry has seen mixed opinions from industry participants, gathered at the Davos event. On the one hand, some, like Coinbase’s representatives, think that Trump’s new term has the potential to draw substantial investment into the cryptocurrency sector, while others, such as South Africa’s central bank chief, criticise industry lobbying of US policymakers. The latter underlined that Bitcoin could not be considered a valuable reserve asset, as well as scrutinised what they saw as the crypto industry’s attempts to influence financial regulatory requirements, mentioning the risk of regulatory capture.

Furthermore, Coinbase welcomed Trump’s strategy to develop a US government Bitcoin stockpile. This was also heavily critiqued by South Africa’s central bank governor based on it suggesting undue influence of lobbyists. At the same time, South African representatives highlighted the problems that could arise from establishing regulation through money, referring to crypto industry participants that backed pro-crypto US congressional candidates, aiming to support those who would pass crypto-friendly bills. As a response to this, Coinbase stated that the impact of pro-crypto groups in the US actually showcased democracy working. Other participants in the panel underscored the necessity for regulatory clarity when it comes to offering big money managers confidence in the sector.

Trump’s plans for the US’s crypto sector