Trump’s Pro-Crypto Stance May Push China to Reconsider Crypto Ban

HashKey Group CEO Xiao Feng believes that Donald Trump’s pro-crypto stance could prompt China to reconsider its cryptocurrency ban. Feng suggests that the Chinese crypto market may regain momentum, especially if the United States adopts supportive policies for digital assets. He bases his view on the growing competition between the United States and China.

The U.S. crypto community is optimistic about the market’s growth under Trump’s leadership. The incoming president has promised to revitalize the U.S. crypto market, pushing America to lead the global crypto industry. The potential firing of SEC Chair Gary Gensler and the resulting regulatory overhaul could bring a significant shift in the U.S. crypto landscape.

Against this backdrop, the HashKey Group CEO foresees a possible advancement in China’s crypto market. In an interview with the South China Morning Post, he said, “If the U.S. Congress and the [incoming] president make crypto policies clear, legislate consistently and promote the industry, it would certainly be a driving force for China to accept cryptocurrencies.”

Read also: China’s Stock Rally Takes a Toll on its Crypto Market

Notably, China has been skeptical towards virtual currencies. The country implemented strict restrictions on initial coin offerings (ICO) in 2017, followed by a ban on crypto trading and mining in 2021. However, Feng’s statement offers an optimistic perspective, reflecting renewed enthusiasm in the crypto sector.

According to Feng, stablecoins could revive China’s crypto market. The country is expected to use regulated stablecoins for cross-border transactions. Feng shared results from HashKey’s survey in Yiwu, China’s key manufacturing and trade center, showing growing interest among merchants in accepting U.S.-dollar-based stablecoins like USDT and USDC.