China Reconsiders Crypto Ban as Officials Discuss Stablecoins Amid Bitcoin’s $118K Surge
China may be shifting its long-standing crypto stance, as regulators held a significant meeting on July 10, 2025, to discuss the growing impact of stablecoins and digital assets. This development comes at a time when Bitcoin has surged past $118,000, signaling renewed global momentum in the crypto space and possibly prompting Chinese authorities to reevaluate their approach.
Key Meeting Hints at Policy Shift
The Shanghai State-owned Assets Supervision and Administration Commission (SASAC), a powerful regulator overseeing China’s state-owned enterprises, convened a meeting with 60 to 70 officials to address the future of stablecoins and the broader digital asset ecosystem. This marks a rare move by the Chinese government, which has maintained a hardline stance against crypto since its 2021 ban on trading and mining.
The timing of the discussion—coinciding with Bitcoin’s surge—raises speculation about a potential pivot in policy. While no official decisions have been made public, the fact that such a high-level regulatory meeting occurred suggests that Beijing is at least open to engaging in discussions around regulated use of digital assets, including stablecoins.
Why Stablecoins Are Now on China’s Radar
Stablecoins like Tether (USDT) and USD Coin (USDC) have grown in importance across global finance, especially for cross-border transactions. With a combined market capitalization of over $200 billion as of early 2025, these digital tokens—backed by fiat currencies like the U.S. dollar—offer a level of stability that makes them attractive to both individuals and institutions.
China’s interest in stablecoins may stem from their potential to enhance cross-border trade, streamline financial flows, and offer more efficient payment infrastructure—especially in a world increasingly moving toward digitized finance. The growing use of stablecoins in global trade and remittances could be seen as both a competitive challenge and an opportunity for China to modernize its financial architecture.
