The New Global Financial Chessboard: How the US is Reshaping Economic Advantages in Digital Competition

From Cautious Regulation to Radical Embrace—America’s Cryptocurrency Turning Point

In recent years, the United States’ attitude toward cryptocurrencies has undergone a dramatic shift. From cautious observation in the past to the proactive embrace under the Trump administration, this change reflects not only a shift in regulatory approach but also a profound realignment of the global financial competition landscape. The U.S. is leveraging cryptocurrencies and blockchain technology to maintain the dollar’s international dominance in the digital financial era while consciously advancing and safeguarding its technological advantages in economic competition.

Strategic Choices Driven by a Triple Dilemma

Why has the U.S. suddenly become so active in cryptocurrencies? On the surface, it appears market-driven, but underlying this are three major challenges:

First, concerns over debt crisis. The U.S. federal debt has exceeded $36 trillion, with debt-to-GDP ratio over 120%. Traditional U.S. bonds are losing appeal, and major creditors are continuously reducing holdings. By incorporating cryptocurrencies like Bitcoin and Ethereum into the national strategic reserves, the U.S. aims to use “digital gold” to hedge against dollar devaluation and send a signal to global markets: dollar assets remain trustworthy.

Second, intensifying global digital financial competition. Economies like China and the European Union are advancing central bank digital currencies (CBDCs) to control their financial destiny. The U.S. has chosen a different path—encouraging innovation through relaxed regulation, incentivizing private enterprises, and attracting capital and technology to the crypto industry. This is a contest for digital financial dominance.

Third, the threat of de-dollarization. Developing countries are accelerating “de-dollarization” in international payments, with emerging payment systems and multilateral CBDC bridging solutions emerging constantly. The U.S. urgently needs to establish new dollar channels within the burgeoning blockchain space to ensure long-term financial dominance.

Ambitious Policy Arsenal

The Trump administration launched a series of coordinated measures to build a comprehensive framework from legislation to assets to mechanisms:

Legal breakthroughs. The GENIUS Act established a regulatory framework for stablecoins, requiring them to be pegged 1:1 to the dollar and defining them as “legitimate dollar tokens,” promoting their widespread use in payments. The L-G Act clarified standards for digital asset classification, resolving jurisdictional disputes between the SEC and CFTC, and reducing legal uncertainty. Simultaneously, the repeal of SAB121 accounting rules significantly lowered the entry barrier for financial institutions to engage in crypto custody.

Establishment of a national strategic reserve. In March 2025, the U.S. announced plans to include Bitcoin, Ethereum, and other crypto assets in the national reserve, aiming to accumulate 1 million Bitcoins over five years to create a “Digital Fortress.” Many of these assets come from judicial confiscation, with the government committing to long-term holding, granting them a strategic status similar to gold.

Strengthening inter-agency coordination. The White House’s National Economic Council established the “Digital Asset Market Working Group” to coordinate SEC, CFTC, Treasury, and other agencies, accelerating regulatory framework development and avoiding overlaps and policy fragmentation.

Direct dialogue between industry and government. The White House Cryptocurrency Summit in March 2025 brought industry leaders, government officials, and scholars together, reaching consensus on four key areas: reserves, legislation, regulatory reform, and competitiveness, signaling strong policy support.

Market Performance and Industry Benefits

These policies have yielded immediate results. Crypto companies like Coinbase and Circle are rapidly expanding their operations in the U.S., creating thousands of jobs. The crypto industry has become an influential force in shaping U.S. policy through political donations and lobbying. Cryptocurrency issues are increasingly becoming a bipartisan consensus topic.

Regulatory Challenges in Global Competition

However, rapid progress also faces challenges:

The EU takes a very different approach. Its Markets in Crypto-Assets (MiCA) regulation sets high thresholds, imposing strict restrictions on stablecoin issuers, aiming to curb the expansion of dollar stablecoins in Europe. Countries like South Korea and Singapore have also developed their own regulatory frameworks. The lack of global unified standards means U.S. companies face complex cross-border compliance costs.

Internal regulatory fragmentation. The SEC and CFTC still have differing views on the nature of digital assets, and state regulations vary (Wyoming encourages innovation, New York enforces strict oversight). This lack of uniformity weakens the efficiency of strategic implementation.

Deep Reflection on Long-term Risks

Massive inclusion of crypto assets into national reserves is a gamble. Bitcoin’s price volatility, energy consumption controversies, and risks of illegal transactions remain. If markets experience severe shocks, the U.S. financial system could face systemic risks.

Deeper concerns include: if confidence in the dollar continues to decline, Bitcoin reserves might evolve into self-protective assets independent of the dollar, undermining the goal of a “digital dollar.” Fragmented global regulatory standards will also force companies to comply with multiple standards, hindering innovation efficiency.

The New Era of Financial Competition

The U.S. is attempting to extend its financial dominance into the digital realm through a dual mechanism of “institutional design + technological integration.” In the short term, this strategy can reinforce U.S. leadership via market forces. But the long-term success depends on whether the U.S. can address domestic regulatory fragmentation, international rule competition, and erosion of trust in the dollar.

Under the premise of protecting economic competitiveness and market fairness, this global digital financial contest is reshaping the international order. The future global financial architecture will gradually take shape amid the tug-of-war between the “Digital Dollar” and “De-dollarization.”