US-China Digital Asset Hegemony Competition: The Prelude to a 'Digital Cold War' Triggered by the GENIUS Act and RWA Tokenization

As of April 27, 2026, the geopolitical struggle for digital asset hegemony has moved beyond mere rhetoric into a stage of entrenched competition based on legislation and infrastructure. With Bitcoin trading around $78,319, the US recently established a federal legal foundation for stablecoins through the GENIUS Act. Conversely, China is responding by building a sophisticated legal framework for Real-World Asset (RWA) tokenization. This suggests a strategic shift in China, moving away from past blanket prohibition policies toward a state-sanctioned digital financial system.

If the United States does not urgently establish a unified federal cryptocurrency bill, China will eventually seize global leadership in this field.

This warning represents the sense of crisis currently flowing through Washington. While the US is striving to eliminate market uncertainty by clarifying the legal status of stablecoins, China is rapidly building an alternative financial ecosystem to counter Western markets, using Hong Kong as a regulatory laboratory. These moves by both countries show that digital assets are being recognized as core infrastructure directly linked to national security, beyond just investment vehicles.

US Legislative Response: The GENIUS Act and Political Friction in the Senate

The GENIUS Act passed by the US Congress is evaluated as a monumental achievement in that it established a comprehensive federal regulatory framework for payment stablecoins. This bill resolved much of the existing regulatory ambiguity by clarifying that authorized stablecoins are not securities, commodities, or deposits. This has allowed institutional investors in the US to participate in the digital asset market on a more stable legal footing.

• Establishment of clear legal status for stablecoins through the GENIUS Act
• Delay in subsequent legislative discussions due to political conflict within the Senate
• Industry uncertainty caused by the absence of unified federal-level regulation

However, as of late April 2026, political friction in the US Senate is slowing the pace of legislation. In particular, conflicts of interest related to the Trump family's businesses have complicated discussions on Senate cryptocurrency bills, making it difficult for additional bills following stablecoins to cross the congressional threshold. These internal growing pains are raising concerns that they could disrupt the US strategy to preempt global regulatory standards.

On the other hand, China has sought a breakthrough policy change by establishing a legal framework for Real-World Asset (RWA) tokenization through the '2026 Notice'. The National Development and Reform Commission (NDRC), the China Securities Regulatory Commission (CSRC), and the State Administration of Foreign Exchange (SAFE) share oversight authority over each area, formalizing a state-controlled digital asset market. This means that China has begun to utilize blockchain technology in earnest as a tool to strengthen national competitiveness.

Global Hashrate Landscape: US Dominance and Chinese Resilience

Looking at the global Bitcoin hashrate distribution as of Q2 2026, the US maintains an overwhelming first place with a market share of approximately 37.4% to 37.5% (about 375-400 EH/s). Based on regulatory clarity, the US is further solidifying its position as the center of the global mining industry. Russia follows with a share of about 16.4% to 16.9%.

Hong Kong: A Strategic Bridge for Mainland Interests and Security Threats

Notably, despite strong past bans, China still maintains its position as the world's third-largest mining hub. China shows persistent resilience, recording a hashrate share of about 11.7% to 12.0%. At the same time, Hong Kong's strategic importance is growing as it serves as a bridge between Western-style markets and mainland Chinese policies. However, according to a report by TRM Labs, cases of illicit funds moving through brokers based in China and Hong Kong are frequently captured, and some Chinese counterparties are recording transaction volumes that significantly exceed their business profiles.

Market Volatility and the 'Hashprice' Crisis

Bitcoin prices peaked at about $124,000 in October 2025, then fell to the $65,000 level in February 2026, putting strong pressure on the mining industry. As of April 27, 2026, the price has recovered to the $78,319 level, but hashprice, which represents mining profitability, remains near an all-time low of $27.89 per petahash (PH/s/day). This economic pressure is triggering a restructuring of the mining industry.

In conclusion, the cryptocurrency competition between the US and China has now become a permanent feature of the global financial system. While the US leads in stablecoin regulation, China is continuing its long-term challenge by rapidly introducing an RWA framework. This 'Digital Cold War' is expected to be a key variable determining the landscape of the global asset market and the balance of power between nations for years to come.