The US Aims to Become the "Global Cryptocurrency Capital": Strategy, Risks, and Future Outlook

The US Aims to Become the "Global Cryptocurrency Capital": Strategy, Risks, and Future OutlookOn March 7th, the White House convened its first cryptocurrency summit, marking the official launch of the US's ambitious plan to become the "global cryptocurrency capital." This move wasn't arbitrary; it builds upon President Trump's prior executive order outlining a strategy to establish strategic Bitcoin reserves and other independent digital asset reserves

The US Aims to Become the "Global Cryptocurrency Capital": Strategy, Risks, and Future Outlook

On March 7th, the White House convened its first cryptocurrency summit, marking the official launch of the US's ambitious plan to become the "global cryptocurrency capital." This move wasn't arbitrary; it builds upon President Trump's prior executive order outlining a strategy to establish strategic Bitcoin reserves and other independent digital asset reserves. Behind this bold strategy lies a multifaceted approach to addressing economic challenges, consolidating financial hegemony, and reshaping the international geopolitical landscape.

The primary driver behind the US government's aggressive push into cryptocurrencies is the escalating national debt crisis. By the end of 2024, the US federal debt surpassed $35 trillion, representing a staggering 125% of GDP. The persistent fiscal deficit pressure compels the US government to seek innovative financial tools to mitigate the debt crisis. The Trump administration proposed annually purchasing 200,000 Bitcoins, accumulating one million over five years. This strategy aims to leverage Bitcoin's inflation-hedging properties and decentralized nature to reduce the devaluation risk of dollar assets and rebuild market confidence in the US economy. Bitcoin's decentralized nature and relatively stable value (compared to the dollar) are considered potential solutions to inflation and dollar devaluation risks. However, Bitcoin's price volatility remains a significant challenge.

Beyond economic considerations, the US's cryptocurrency development carries clear strategic geopolitical intentions. The government aims to foster a cross-national mechanism for digital currency recognition and clearing, aiming for dominance within the global digital financial system. By establishing technological and policy barriers, the US seeks to consolidate its financial hegemony, preventing non-allied nations from accessing its dominant financial ecosystem and further strengthening its influence in the global financial system. This strategy aims to ensure US leadership in the upcoming digital financial age and limit the influence of competitors. However, this approach may face challenges from other nations and international organizations.

Specific US government actions include the introduction of the "21st Century Financial Innovation and Technology Act" and the "Responsible Financial Innovation Act," which aim to define the legal status and regulatory standards for different types of crypto assets. These acts clearly distinguish between payment-type, security-type, commodity-type, and stablecoin-type digital assets and establish regulatory sandboxes to encourage pilot programs by innovative companies and startups. To promote cryptocurrency adoption, the US government also repealed regulations restricting bank participation in cryptocurrency markets, encouraging traditional banks, asset management companies, and insurance companies to enter the cryptocurrency space, thus increasing market liquidity and institutional investor participation.

To better execute this strategy, the US government appointed pro-cryptocurrency officials to key regulatory agencies and government departments. Examples include Scott Besent as Treasury Secretary, Paul Atkins as the Chairman of the Securities and Exchange Commission, and David Sacks overseeing White House cryptocurrency affairs. These officials possess extensive market experience and policy positions in the cryptocurrency field: Besent, with a background in investment management, supports using cryptocurrencies to hedge against inflation risks; Atkins advocates for relaxed regulation of crypto assets and market-driven development; and Sacks, a prominent venture capitalist, has long championed the application and innovation of blockchain technology in Silicon Valley.

Furthermore, the US government actively courts key cryptocurrency companies, offering clear regulatory guidance, tax incentives, and financial subsidies to attract businesses that relocated to Singapore, Switzerland, and other countries due to stricter regulatory policies. These measures aim to improve market participant compliance and security, enhancing global investor confidence in the US cryptocurrency market. However, over-reliance on government subsidies could lead to market distortions and excessive dependence on government support.

However, the US government's new cryptocurrency policy faces significant risks. Cryptocurrency markets are highly volatile; for example, in early 2025, Bitcoin's price plummeted from nearly $110,000 to less than $80,000. This volatility poses a significant challenge to fiscal fund management, greatly increasing the complexity and risk of reserve asset management. Furthermore, managing reserve asset risks and avoiding the appearance of market manipulation require careful consideration and resolution. The lack of historical experience presents the US government with unprecedented challenges.

The US government plans to integrate cryptocurrencies into the Treasury's Exchange Stabilization Fund, operating in conjunction with a digital dollar to form a "dual-track currency system." This plan could profoundly impact the global financial system and potentially accelerate the global adoption of digital currencies. However, this "dual-track currency system" could also create complex monetary policy coordination issues and exacerbate financial market volatility.

In conclusion, the US government's new cryptocurrency policy is a bold endeavor, and its ultimate impact remains to be seen. This policy will further intensify competition in international financial markets and may propel the world into a new era dominated by digital currencies. The future evolution of the global financial system is a focal point for all nations and crucial to the success of the US cryptocurrency strategy. Whether the US successfully achieves its goal of becoming the "global cryptocurrency capital" will have profound implications for the global financial landscape and warrants continued attention. However, the potential risks cannot be ignored, requiring careful policymaking and effective risk management measures. This bold attempt will have far-reaching consequences for the global financial system and international relations, and its success or failure will significantly impact the future world order.