Trump to China: Stay Out of Crypto — Global Tensions Rise

• President Donald Trump is pushing for crypto to outcompete China.
• China is also shifting its stance on crypto, triggering more competition with the US.

US President Donald Trump has again pledged his commitment to the crypto industry amid escalating global tensions. Cryptocurrencies are part of the President’s broader strategy to prevent China from gaining control of emerging technologies and the global economy.

Trump Wants China Out of Crypto

“I’m a big fan of crypto because I want to keep it away from China,” says Trump. After returning to the White House from Palm Beach, Florida, he said this in a casual interview on Sunday.

Trump’s comments come amid rising competition between the US and China in emerging technologies like Artificial Intelligence (AI) and blockchain. In his statement, Trump acknowledged the rapid adoption of cryptocurrencies. He expressed concerns that China’s growing technological influence could spread to crypto unless the US actively counters this trend.

The President added that he does not want China to take over crypto, hence his support for the industry. Indeed, Trump’s support for crypto is glaring, picking up from his Presidential campaign for his second term in office. 

Upon Trump’s return to the White House office, the SEC launched a crypto task force to lower regulatory hurdles. As noted in our earlier post, SEC Commissioner Hester Peirce said the task force seeks to clarify digital assets’ “securities” status.

Trump further pledged his commitment to the industry by appointing former PayPal COO David Sacks as the AI & Crypto Czar. In a previous article, we discussed that Sacks unveiled plans to push forward regulations that could reshape the US crypto ecosystem.

The President’s nuclear family is also deeply involved in the crypto industry. The Trump family is now leading a crypto platform, World Liberty Financial (WLFi), and the President and Melania have launched their memecoins. In a recent update we covered, Eric Trump warned that banks could go extinct in the next 10 years if they fail to adopt crypto.

China Coming Up to Speed With Crypto

China, for its part, is gradually recognizing cryptocurrencies and blockchain technologies. The Chinese government has been authoritarian on Bitcoin and other cryptocurrencies, banning the technology in 2021. 

However, the country is gradually reducing its tough crypto stance, with Hong Kong leading the charge. As we discussed earlier, Hong Kong has authorized the launch of spot ETFs for Bitcoin and Ethereum, the first in Asia. The government is also drafting new tax policies that benefit hedge funds and family offices looking to invest in digital assets.

Furthermore, a recent report by VanEck revealed that China and Russia are settling energy trade with Bitcoin and other cryptocurrencies. 

China has also disclosed plans to develop a state-backed digital yuan, which has spurred concern in Washington. 

Experts are worried that Beijing’s growing crypto and blockchain efforts could give China unprecedented control over global financial systems. Hence, Trump’s endorsement of crypto has become a symbol of resistance against China’s ambitions.