Trump’s Policies Could Push China to Ease Digital Currency Rules

• Trump’s pro-crypto stance may push China to reconsider its ban on digital assets by 2026.
• Economic stimulus in China raises speculation of potential easing on digital asset restrictions.
• Trump’s policies could accelerate U.S. crypto adoption, though challenges to a Bitcoin reserve remain.

Following Donald Trump’s U.S. election victory, debates have intensified around China’s stance on cryptocurrencies. A Hong Kong-based crypto leader, Xiao Feng, suggested that Beijing might reconsider its ban on digital assets if the U.S. strengthens regulatory clarity under Trump’s administration.

HashKey Group Chairman and CEO Xiao Feng noted that Trump’s pro-crypto direction could indirectly nudge China toward policy revisions. A clear U.S. regulatory approach could influence China to reassess its restrictions on trading and mining.

China’s ban on cryptocurrency trading and mining, in place since 2021, might face changes if the U.S. takes the lead in creating favorable crypto policies. Feng projected a cautiously positive outlook, estimating that Beijing could ease its grip on digital assets within two years if U.S. policies create a ripple effect.

Economic Stimulus in China Fuels Speculation

Coinciding with these discussions, China’s recent announcement to boost its economy has added fuel to market speculation about its future crypto policies. The government plans to increase debt issuance to support low-income households and stabilize the property market.

Moreover, market observers suggest that these economic measures, coupled with possible regulatory adjustments, could strengthen Asia’s digital asset market.

Read also: Trump’s Bitcoin Reserve Vision: U.S. Leadership in Digital Currency

Trump’s Crypto-Friendly Policies: Promises and Challenges

President-elect Donald Trump has pledged to create a crypto-friendly environment, including exploring a national Bitcoin reserve and strengthening regulatory support for the industry. These promises have generated excitement, though skepticism remains about their feasibility.

Galaxy Digital’s Michael Novogratz expressed doubts about a U.S. Bitcoin reserve but predicted Bitcoin’s value could reach $500,000 if such a policy were implemented.

With unified control over legislative and executive branches, Trump’s administration may prioritize fiscal policies, with regulatory clarity on crypto expected to follow.