Grayscale: China Could Rethink Crypto Ban Following U.S. Bitcoin Reserve Announcement

China may be preparing to reassess its tough stance on cryptocurrencies following the United States’ recent strategic move to embrace bitcoin, according to a research note from asset manager Grayscale published Monday.

“The recent pivot by the U.S. government — establishing a Strategic Bitcoin Reserve — could put pressure on China to reconsider its crypto policies,” the report said. “If Beijing shows signs of softening its restrictions, it could mark a turning point for global bitcoin adoption.”

President Trump’s directive to create a government-held bitcoin reserve, partially composed of seized assets, signals a significant shift in Washington’s attitude toward digital assets. It’s also likely to influence global regulatory conversations, Grayscale suggested.

Currently, mainland China maintains a ban on most crypto activities, including trading and mining. However, Grayscale noted that crypto ownership remains legal, and digital finance developments in Hong Kong point to more flexible experimentation under the “one country, two systems” model.

In another sign of possible evolution, China’s Supreme Court held discussions in February exploring the legal classification of digital assets — a move that may hint at future regulatory shifts.

“If China moves even modestly toward regulatory openness, it could dramatically accelerate bitcoin’s integration into the global financial system,” Grayscale concluded.