Trump warns China about the vigorous development of Bitcoin! The United States pardons CZ to launch the defense of Crypto Assets.

Former US President Trump warned in an interview that China “is currently vigorously developing Bitcoin and Crypto Assets.” Trump clearly stated that his goal is to maintain the United States' leading position in the Crypto Assets industry, “If we do not lead, China or other countries will take our place.” During the interview, Trump defended his pardon of Binance co-founder CZ, calling the case “Biden's political persecution,” and claimed that CZ “has been treated unfairly.”

Trump warns China about a massive advance into Bitcoin

(Source: X)

As Trump made remarks regarding China, it coincided with growing concerns that China, despite having previously imposed bans, was quietly restoring its influence in the Crypto Assets sector. “China is now making a big push into this area,” he stated, warning that if the United States loses this domain, it could undermine its economic and technological advantages. This warning is not unfounded but is based on multiple objective observations.

Although China comprehensively banned crypto assets trading and mining activities in 2021, this does not mean that China has given up on this field. On the contrary, China has adopted a strategy of “internal prohibition and external layout.” While strict control is imposed domestically, Chinese enterprises and investors are actively participating in the crypto industry overseas. Hong Kong, as a special administrative region of China, has become one of the most important regulated crypto assets centers in Asia. The Hong Kong Securities and Futures Commission has approved several virtual asset trading platforms and launched crypto ETFs, which are all manifestations of China's influence.

In addition, China's investment in blockchain technology research and development is extremely considerable. The Chinese government has listed blockchain as a national strategic technology and invested a large amount of resources to support technology research and development. Although these investments are mainly concentrated in the areas of consortium chains and central bank digital currencies (digital RMB), the relevant technological advancements can easily be transferred to public chains and Crypto Assets. China's number of blockchain patent applications has ranked first globally for several consecutive years, indicating its strong technological reserves.

Despite the ban on centralized crypto asset trading in China, the country is actively exploring and investing in blockchain technology, maintaining influence through Hong Kong's regulated crypto asset center. This strategy of “openly prohibiting while secretly supporting” allows China to avoid falling behind in the technological race while maintaining financial stability. For Trump, this strategy is more dangerous than the past “regulatory uncertainty” in the United States, as it combines government guidance with market vitality.

China's Influence in the Crypto Assets Field

Hong Kong Hub: As a regulated Asian crypto center, connecting Chinese capital with global markets.

Blockchain Patent: The highest number of applications globally, with strong technological reserves.

Digital Renminbi: Leading in the CBDC field, technology can be transferred to other applications.

Overseas Layout: Chinese enterprises and investors are actively participating in the global Crypto Assets industry.

Strategic Positioning: Designating blockchain as a national strategic technology.

Trump also stated that if the United States fails to play a leadership role, other countries, especially China and Japan, will take the lead. “If we don't act as leaders, China or other countries will take over,” he added. This perspective of viewing Crypto Assets as a field of national competition marks a significant shift in American policy thinking.

caused intense controversy over CZ's pardon defense

In the interview, Trump was also asked about his controversial decision to pardon Binance co-founder CZ. CZ admitted to violating anti-money laundering laws in 2023, and the U.S. government stated that the case posed a “significant threat to national security.” Trump dismissed these allegations, calling the case a “political persecution by Biden.” He claimed that CZ was treated unfairly and described him as a “respected and successful person.”

Trump stated that he personally does not know much about Zhao Lijian but believes that the pardon is reasonable. “He, like me, is a victim of a group of vicious people in the Biden administration,” Trump said. He also pointed out that his sons are more involved in the crypto assets space than he is. He emphasized that he believes digital assets are a legitimate and valuable component of the American economy. Therefore, this position marks a significant shift in his viewpoint.

This defense logic is highly controversial. From a legal perspective, CZ indeed violated U.S. anti-money laundering laws. As the world's largest Crypto Assets exchange, Binance failed to establish an effective KYC (Know Your Customer) and AML (Anti-Money Laundering) system, allowing a large amount of illegal funds to flow through the platform. Investigations by the U.S. Department of Justice show that Binance processed billions of dollars in suspicious transactions, including funds related to sanctioned countries and terrorist organizations.

However, from a political and industrial perspective, Trump's pardon can be interpreted as a strong signal of “America welcoming the Crypto Assets industry.” Although CZ is Chinese, Binance was once the core infrastructure of the global crypto ecosystem, and its downfall caused shockwaves throughout the industry. By pardoning CZ and characterizing him as a victim of “political persecution,” Trump is actually sending a message to global crypto entrepreneurs: under my leadership, America will not suppress the Crypto Assets industry as it did during the Biden era.

This kind of message is extremely important for attracting crypto companies back to the United States. During Biden's term, many crypto companies relocated overseas due to regulatory pressure, including friendly jurisdictions for crypto such as Singapore, the UAE, and Switzerland. Trump hopes to attract these companies back to the U.S. through a relaxed regulatory environment and clear policy support. CZ's amnesty is a symbolic first step in this strategy.

Bitcoin Becomes the New Battleground in Sino-U.S. Technological Competition

Trump's renewed enthusiasm for Crypto Assets aligns with his recent campaign messages, which have consistently emphasized that innovation and technology are key areas for the growth of the American economy. He believes that the U.S. policies during President Biden's administration have hindered the development of the Crypto Assets sector. Additionally, the actions of his own administration have also propelled the U.S. to a leading position in Crypto Assets innovation. “Because I am the president, we are the leaders in the Crypto Assets field worldwide,” Trump confidently declared.

Trump compared the cryptocurrency competition to artificial intelligence, stating that it is crucial for national competitiveness. This analogy is highly insightful. Artificial intelligence has been widely recognized as a key strategic technology, and the competition between the U.S. and China in the AI field is seen as the core battleground for technological hegemony in the 21st century. Trump elevates Bitcoin and cryptocurrency to an equally important strategic status, indicating that he believes financial technology innovation is also a key component of national competitiveness.

This kind of perception is not common among traditional political leaders. Most politicians still view Crypto Assets as speculative tools or regulatory challenges rather than strategic assets. Trump's perspective represents a paradigm shift: Crypto Assets are not only financial innovations but also manifestations of national strength. Controlling the infrastructure of Crypto Assets and the authority to set standards is as important as controlling the infrastructure of the internet and communication standards.

Trump reiterated that he hopes the United States can maintain its leading position in the Crypto Assets and artificial intelligence fields. He specifically pointed out, “We are number one, and that is the only thing I care about. Therefore, I do not want China or any other country to take our lead.” This expression of “America First” is consistent with Trump's political style, but its application in the Crypto Assets field is entirely new.

His remarks reflect a broader trend among American political leaders, who now see Crypto Assets not only as a financial innovation but also as a national strategy. At the same time, as China increases its engagement, Trump's warning highlights the growing pressures faced by the United States in strengthening its position in the global digital economy. This pressure comes not only from technological competition but also from the struggle for control over financial infrastructure.

Dramatic Shift in US Crypto Assets Policy

Trump believes that the Crypto Assets industry is crucial to the national and technological competitiveness of the United States, and this awareness has driven a dramatic shift in U.S. crypto policy. During Trump's second term, SEC Chairman Gensler was dismissed, crypto-friendly regulators were appointed, multiple lawsuits against crypto companies were withdrawn or settled, and crypto-friendly legislation such as the Market Structure Act advanced in Congress, with the establishment of a national Bitcoin reserve being put on the agenda. These policy changes were completed in just a few months, demonstrating the decisiveness of the Trump administration in the crypto space.

However, this policy shift also faces challenges. First is the partisan divide, as Democratic lawmakers remain cautious about crypto assets, concerned about consumer protection and financial stability risks. Second is regulatory balance; overly lenient regulations may trigger new financial risks, while excessive strictness could stifle innovation. Third is international coordination, as crypto assets are global in nature, and the impact of a single country's policies is limited, necessitating coordination with other major economies.

Trump's embrace of Crypto Assets has pushed Bitcoin from the margins to the center of national strategy. This is a significant positive for the Crypto Assets industry, but it also means that Crypto Assets will become more deeply involved in geopolitical games. The competition between China and the United States in the field of encryption may become a key variable in the evolution of the global financial landscape over the next decade. Investors need to closely monitor this trend, as it will profoundly affect the long-term direction of Bitcoin and the entire Crypto market.