A crypto-friendly Trump administration might just push China to ease its grip on digital assets. That’s the insight from Xiao Feng, the CEO of Hashkey Group. In a recent chat with the South China Morning Post, he shared his strong belief that China’s crypto market will eventually open up. This is especially true if Donald Trump, the new U.S. president, and the Republican Congress back digital assets.
Feng said, “If the U.S. Congress and the president make crypto policies clear and consistently promote the industry, it would certainly encourage China to accept crypto.” Hashkey Group, based in Hong Kong, is a Web3 infrastructure developer valued at over $1.2 billion as of January.
It’s important to remember that the Chinese government banned initial coin offerings (ICOs) back in 2017. Then, in 2021, they prohibited crypto trading and mining. Feng believes that China could reopen its crypto market through regulated stablecoins. He stated, “Stablecoins are currently the best solution for cross-border business-to-consumer trade.”
During his previous term, Trump was skeptical about Bitcoin (BTC) and crypto. However, over the past year, he’s been promising to protect and grow the digital asset sector while campaigning. At events last summer, he vowed to fire SEC Chair Gary Gensler on his first day in office. He also promised to reverse policies that limit crypto investors and companies from using digital assets.
Additionally, Trump mentioned that the U.S. would stop selling its collection of seized Bitcoin on the open market. Instead, he plans to hold it strategically as an investment.