A Trump administration taking a crypto-friendly stance could put pressure on China to soften its stance on crypto assets, according to an executive at a leading Web3 firm.
China and Crypto
HashKey Group CEO Xiao Feng stated in an interview with the South China Morning Post that he believes that if the United States supports crypto assets, China will open this market.
The Chinese government banned token presales (or ICO) in 2017 and stopped crypto trading and mining in 2021. Feng argued that the crypto market could be reopened with regulated stablecoins. The Chinese government, which has built a bridge with crypto via Hong Kong, has to compete with the United States, although it is not yet as supportive as expected. If it strives to get a share of crypto innovation, it can quickly grow its slice of the pie. Who benefits from Trump and China’s rivalry over crypto? Of course, it benefits investors who can boldly buy at low prices in difficult bear markets.
Trump’s Crypto Commitments
Trump used Bitcoin during his previous presidency. 
$87,585While he was skeptical of , and crypto, he promised to protect and develop the crypto asset industry during this election campaign. He has stated that he plans to remove SEC Chairman Gary Gensler and end policies that prevent the use of crypto.
“If the US Congress and the president clarify crypto policies and continuously legalize and promote the industry, this will be an impetus for China to accept crypto.” – Xiao Feng.
HashKey Group is a Hong Kong-based Web3 infrastructure developer that was valued at more than $1.2 billion in January.
Trump also stated in his speeches that the USA would stop selling its Bitcoin in the open market and keep it as a strategic investment.
The industry is hopeful that if the US clarifies its policies towards crypto, there can be a transformation in major markets such as China. These developments may play an important role in shaping the future of global crypto asset markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
