Trump’s Pro-Crypto Stance Might Prompt China To Reconsider Crypto Market Revival, HashKey CEO

Key Takeaways

• Trump’s pro-crypto stance may spur crypto policy shifts in China.
• HashKey CEO Xiao Feng suggests China could reconsider its crypto ban if Trump popularizes crypto use.
• China has maintained a comprehensive ban on crypto-related activities since 2021.

Donald Trump’s recent re-election and his outspoken support for the crypto industry could prompt China to revisit its stringent ban on digital assets.

As the U.S. and China continue to vie for global influence, Trump’s expected push for pro-crypto regulations might place pressure on Beijing to adapt or risk falling behind in the rapidly evolving financial landscape.

China May Have To Change its Crypto Stance

China imposed a sweeping ban on all crypto-related activities, including trading and mining, in 2021.

However, growing crypto adoption globally and recent U.S. developments may bring Beijing’s stance into question.

HashKey Group chairman and CEO Xiao Feng recently spoke with the South China Morning Post , suggesting that Trump’s crypto policies could accelerate a shift in China’s timeline to accept digital assets.

“China perhaps needed five or six years from now to accept cryptocurrency businesses,” said Xiao. “But with these factors, that time frame could be shortened to two years.”

China and other BRICS nations, frustrated by the dominance of the U.S. dollar, are exploring alternatives to dollar-based trade, including central bank digital currencies (CBDCs).

Recently, Russia legalized crypto payments for international trade, underscoring a shift among U.S. adversaries toward crypto as a solution to circumvent dollar-based sanctions.

Stablecoin Adoption on the Rise in China

Although crypto remains officially banned, interest in stablecoins is growing.

A recent survey by HashKey in Yiwu, a commercial hub in China, found that many shop owners reported customers asking about stablecoin payments, particularly with dollar-backed assets like USDT and USDC.

Xiao, formerly with the People’s Bank of China, indicated that stablecoins tied to the U.S. dollar are gaining traction, especially in trade-heavy regions.

Trump’s Potential Impact on Global Crypto Policy

Trump’s pro-crypto platform has raised expectations of regulatory clarity and innovation in the U.S. crypto industry.

His administration is expected to explore policies that could bolster crypto adoption, including proposals to establish a Bitcoin reserve alongside the dollar and eliminate capital gains tax on crypto profits.

If Trump’s policies spur widespread U.S. crypto adoption, Beijing may feel compelled to reconsider its restrictive stance to stay competitive on the global stage.

As Trump prepares to take office in 2025, international markets and policymakers will be watching closely to gauge the ripple effects of the U.S.’s potential crypto pivot.

The evolving U.S.-China dynamic, influenced by Trump’s expected crypto-friendly policies, could very well reshape the future of digital assets worldwide.

About the Author

Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.

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