On October 25, 2025, the U.S. and China signed a new trade agreement that changed the world's perspective on digital currencies. The agreement was not just an economic deal, but the beginning of a new chapter in the global regulation of digital assets.

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Essence of the agreement

The meeting took place between U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng. On Monday, they agreed to establish a formal cooperation protocol for dealing with digital currencies in cross-border trade.

The goal is:

- Regulating cryptocurrency transactions between the two countries

- Setting unified standards for transparency

- Enhancing trust in assets like Bitcoin and Ethereum

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An explosion in stablecoin activity

Once announced, the market exploded with strong liquidity, there were unprecedented high transactions of USDT and USDC. Investors saw more regulatory clarity, so they entered vigorously. The rapid interest also shows that markets react immediately to any political development related to digital currencies.

The interpretation is:

The agreement gave the impression that stablecoins could become an official part of global trade, not just a trading tool.

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The new challenge: Heavy regulation on small projects

- The dark side of the agreement could burden startups with legal obligations.

- Large companies have legal and financial teams, so they will benefit.

- Small web3 projects may be harmed or delayed due to new compliance requirements.

It means the market is entering a more (professional) phase, but competition will decrease for newcomers.

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Market volatility from a historical perspective

When trade tensions between the US and China first eased, Bitcoin rose, and then corrected strongly.

But this time the expectation is different. It means volatility might gradually reduce thanks to the new regulatory framework, making the market more stable in the long run.

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Risks of global digital transfers

The new agreement opens the door for a wave of digital cross-border transfers, but there are clear risks, such as:

- Regulatory tightening could stifle innovation in the DeFi space.

- Decentralized protocols must balance between (compliance with laws) and (operational freedom).

- Control will lean more towards large companies and institutions.

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Summary

The agreement between the US and China is a real turning point in the future of digital currencies. This gives the market more clarity and stronger regulation. But at the same time, it imposes a tough reality on small companies. Stablecoins have become candidates to play a key role in the upcoming international trade.

If China really decided to expand its digital borders, competition for the stablecoin market will ignite.

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Sources:

US–China Trade Dialogue Reshapes Cryptocurrency Dynamics (25 Oct 2025)

US–China Trade Dialogue Reshapes Cryptocurrency Dynamics