- US President Donald Trump recently announced a US Crypto Reserve
- The White House also hosted a Digital Asset Summit with key industry leaders a few days ago
- In 2019, Trump stated that Bitcoin and cryptocurrencies are unreliable and invaluable
During his first term in office, in 2019, US President Donald Trump trashed Bitcoin (BTC) and other cryptocurrencies, calling them unstable and based on “thin air.”
He also criticized their potential to facilitate illicit activities like drug trafficking and fraud. However, his view has shifted significantly since his election for a second term, leading to an ambitious plan to position the US as the global leader in digital assets.
Trump’s Drastic Shift in Crypto Policy
Since taking office again in January 2025, Trump has aggressively embraced cryptocurrencies. He even held a first-of-its-kind White House summit dedicated to digital assets a few days ago.
Speaking to a room of industry leaders, including Chainlink’s Sergey Nazarov, Trump declared that the US would become the “crypto capital of the world.”
His turnaround on digital assets began during his 2024 presidential campaign, when he warned that the US must embrace cryptocurrency to prevent China from taking the lead.
Related: Trump to Sign Executive Order Overturning Biden’s Crypto Banking Restrictions
“Trump’s ambition to position the US as the global crypto capital isn’t just about economic leadership – it’s also a geopolitical move,” said Matteo Giovannini, a senior finance manager at the Industrial and Commercial Bank of China.
To further cement his administration’s crypto stance, Trump signed an executive order to establish a “Strategic Bitcoin Reserve and United States Digital Asset Stockpile” which will include Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA).
China’s First Response
China, which previously imposed strict regulations on cryptocurrency trading and mining, may be rethinking its position now.
Bitcoin advocate David Bailey, one of the key figures in influencing Trump’s change of heart on digital assets, claimed that China has been holding closed-door meetings on Bitcoin since the 2024 US elections. Though no official confirmation has come out, the speculation suggests that Beijing may be planning its own strategic response to Trump’s crypto push.
Historically, China has maintained tight control over financial markets, pushing for its central bank digital currency (CBDC), the digital yuan, rather than embracing decentralized assets like Bitcoin.
Related: EU’s Concern of Trump’s Pro-Crypto Policies To Undermine Euro Stability
However, if the US successfully integrates Bitcoin into its financial system and trade policy, China might need to re-evaluate its stance to avoid falling behind.
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