The crypto sector has celebrated the election and inauguration of Donald Trump as American president, but according to the governor of the Central Bank of South Africa, the increased influence of the sector in American politics is equivalent to a regulatory capture.
The South African Reserve Bank (SARB) Lestja KGanyago recently shared the scene with the leaders of “Crypto” at the World Economic Forum (WEF) in Davos, in Switzerland, where the new era of digital assets under the Trump administration took the in front of the stage. Coinbase (Nasdaq: Coin), CEO, Brian Armstrong, congratulated the new president for having supported the sector, while the former manager of the White House Anthony Scaramucci estimated that the anti-Crypto position of Democrats finally cost them elections.
In the midst of all celebrations, KGANYAGO warned that the strong influence of the cryptography sector in the elections, where it paid nearly $ 250 million last year, had a rear engine: regulatory capture.
“What we need is a company that supervises conversations on how policies should evolve in such a way that regulations are clear for everyone in industries. If the regulations must be established by the power of money, we have a problem, “he told the public.
Indeed, the “crypto-bros” have spared no expense to push their program in the last US elections. Beyond the rallying of Trump to overcome the line against Kamala Harris, Kamala Harris, dozens of cryptographic companies have spent millions to elect Pro-Crypto heads of state.
The largest crypto pac was Fairshake, whose main donors include Coinbase, Ripple and Andreessen Horowitz, who were all exposed under the Biden administration. Ripple took place in a four -year legal battle with the dry, while Coinbase only started his legal dispute before former chief Gary Gensler was ousted. Horowitz has invested in several cryptographic companies which were in regulatory reticlations under the previous administration; Almost all regulatory actions against these companies will be swept under the carpet by the Trump government.
Beyond Pro-Crypto regulations, Trump should put pressure for a national BTC strategic reserve. Armstrong is (not surprisingly) in full support from the reserve, telling the public that “the BTC is, essentially, the new gold stallion”.
KGanyago did not agree and noted that the SARB did not intend to establish a BTC reserve.
“I would have an important problem with a lobby that says that governments should hold this asset or have this asset … If we say now OK, Bitcoins … What about platinum? What about coal? Why don’t we hold strategic beef reserves, sheep reserves or apple reserves? Why Bitcoin?
KGanyago, who has run the SARB since 2014, warned governments against intimidation “by an industry with a particular interest in a particular product, which imposes it on the company and says that the company must hold it”.
South Africa has directed regulations on digital assets on the continent, having issued nearly 250 licenses to virtual active service providers (VASP) in 2024.
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