Cryptocurrency Gaming: A New Arena in Great Power Strategic Competition

As the global economy accelerates into the digital age, cryptocurrencies have become the new battleground for nations vying for dominance. A series of recent policy adjustments indicate that the United States is attempting to reshape the strategic landscape of hegemony in this emerging field by promoting the institutionalization and legalization of the digital asset industry. This competition involves financial regulation, technological innovation, and a profound reshaping of the international monetary system.

From Debt Pressure to Strategic Choice

The current predicament faced by the United States is evident. Federal debt has surpassed $36 trillion, with the debt-to-GDP ratio exceeding 120%. Traditional foreign investors are continuously reducing their holdings of U.S. bonds, a trend that directly threatens the credibility of the dollar within the global financial system.

Against this backdrop, the move to incorporate cryptocurrencies like Bitcoin and Ethereum into national strategic reserves is particularly meaningful. By positioning these digital assets as “digital gold,” the strategy serves not only as risk hedging but also as a means to attract global capital flows and to reshape the appeal of dollar assets. This approach aims to continue the historical process of hegemony in the digital economy era through new methods.

Institutional Innovation and Market Incentives

To ensure leadership in the digital financial sector, significant adjustments have been made to the policy framework. Key legislation (such as the GENIUS Act and the L-G Act) clarifies the regulatory system for stablecoins, requiring them to maintain a 1:1 peg with the dollar, while also simplifying classification standards for digital assets and reducing legal barriers for financial institutions’ participation.

Meanwhile, a national-level crypto reserve plan has been launched. Over the next five years, the goal is to accumulate 1 million Bitcoins to build a “digital fortress.” These assets are mainly derived from judicial confiscations, with the government committing to long-term holdings, granting them a strategic status similar to gold reserves.

This series of measures also includes establishing inter-agency coordination bodies, integrating the efforts of the SEC, CFTC, and the Treasury Department to accelerate the development of regulatory frameworks and avoid policy chaos caused by overlapping authorities.

Platform Expansion and Industry Incentives

A relaxed regulatory environment has attracted major crypto companies to expand their operations in the U.S. Coinbase and other leading platforms have rapidly developed, creating thousands of jobs. More notably, the crypto industry has become an influential force in shaping policy through political donations and lobbying activities (exceeding $200 million), gradually making digital asset issues a bipartisan consensus.

Another noteworthy trend is the global expansion of USD stablecoins (such as USDC). Issued by American entities, these stablecoins effectively create a new dollar circulation network: overseas users purchase stablecoins, and issuers are required to hold equivalent USD or U.S. Treasury bonds in U.S. banks as reserves. This indirectly extends the dollar hegemony into blockchain networks, forming a new capital absorption mechanism.

Intensified International Competition

However, the international competition faced by the U.S. is far more complex than expected. The EU has introduced a stricter regulatory framework for crypto markets, the Markets in Crypto-Assets (MiCA), setting high thresholds for stablecoin issuance and intentionally limiting the expansion of dollar stablecoins in Europe. Meanwhile, countries like Singapore and South Korea have developed their own targeted regulatory systems, and the lack of global standards means U.S. companies face higher compliance costs.

A more fundamental challenge comes from the accelerating trend of “de-dollarization.” Emerging economies are promoting currency diversification in cross-border payments, and cross-national CBDC (Central Bank Digital Currency) cooperation projects are increasing. These new payment networks are no longer entirely dependent on the dollar, directly threatening the monopoly of the dollar as the global settlement currency.

Internal Contradictions and Risks

Internal regulatory divisions within the U.S. also constrain the effectiveness of this strategy. The SEC and CFTC have long had differing views on the classification of crypto assets, and regulatory standards vary greatly across states (Wyoming encourages innovation, New York enforces strict compliance). This fragmented environment creates numerous obstacles for enterprises.

More concerning are the high volatility, energy consumption controversies, and illegal risks still overshadowing the crypto market. Large-scale inclusion of these high-risk assets into national reserves could pose systemic threats to the U.S. financial system. Sharp market fluctuations could lead to unpredictable consequences.

Uncertainty in Long-term Game

In the short term, this strategy may help strengthen the U.S. market advantage and inject new vitality into the dollar system through industry momentum. However, in the long run, whether these internal and external difficulties can be overcome remains uncertain.

If the dollar’s credibility continues to decline, reserve assets like Bitcoin may evolve into independent safe-haven tools outside of the dollar, thereby weakening their function as extensions of the dollar. Fragmentation of global rules could also force enterprises to face more complex compliance and environmental standards, potentially slowing innovation.

In the digital economy era, the concept of hegemony is being redefined. It no longer relies solely on military or economic hard power but increasingly depends on who can set technological standards, control governance rules, and build international alliances. The U.S. is using cryptocurrencies as a new tool to try to take the initiative in this global redistribution of power. However, the ultimate outcome of this competition remains full of uncertainties and challenges.