Could U.S. Crypto Momentum Push China to Rethink Its Ban?

As the United States pushes forward as a crypto-friendly hub, China could soon find itself under pressure to rethink its restrictive stance on digital assets.

Xiao Feng, CEO of Hong Kong-based crypto exchange HashKey, has pointed out that the U.S.’s pro-crypto momentum—especially after Donald Trump’s recent election win and supportive stance—might drive China to adapt its policies more quickly than previously anticipated. Feng suggests that if the U.S. clarifies its regulatory landscape, particularly under Trump’s influence, China may ease its restrictions on cryptocurrency within the next couple of years rather than taking a more prolonged approach.

The “Trump effect” appears to be influencing global markets, with Bitcoin climbing to a record high of $93,000 and the overall crypto market cap surpassing $3 trillion. Trump has also pledged to reduce regulatory barriers in the U.S., including potential changes at the SEC, which has historically enforced strict crypto regulations.

Additionally, Trump’s stance to hold, rather than liquidate, seized Bitcoin signals a commitment to supporting the sector, creating speculation that other nations may follow suit.

Feng adds that China’s economic shifts, including measures like increasing debt issuance and support for lower-income households, may indicate readiness to revisit its stance on crypto. These measures, combined with the expected regulatory clarity in the U.S., could encourage China to reconsider its ban on crypto trading and mining, aligning with the international trend of growing acceptance and integration of digital assets.

If the U.S. continues on its current path of promoting the crypto industry, Feng believes it could be a pivotal influence on China’s policies, potentially accelerating the timeline for loosening restrictions. As interest in digital assets surges across Asia, China’s response to these pressures could play a significant role in shaping the global crypto landscape.