Trump discharged his FIT21 veto at the very end of 2025 to show his disapproval of the legislation, calling U.S. crypto trading rules a big favor to China. The bill was going to reduce CFTC (Commodities Futures Trading Commission) supervision for most tokens, allowing U.S. innovation to flourish and large amounts of capital to flow in. Instead, it’s delayed, and the standoff continues. The SEC has paused cases, but the absence of well defined rules keeps exchanges hesitant and developers looking elsewhere.
While China’s state backed platforms continue accumulating assets, American traders are airing grievances across forums. Even with Trump’s earlier dereg push freezing major witch hunts, this veto is viewed by many as the ultimate self sabotage.
Forum Fury Unleashed
Traders argue the move “helped China take over U.S. power, Trump stopped U.S. innovation dead while Beijing kept manipulating without control.”
Wall Street bets fires back: “First we fix the SEC clowns. FIT21 was a CCP trap, the veto saves real Americans from foreign scammers.”
Degens are split. “Did we get saved from China? Nope, ETF dreams are gone. Whales are already heading to Dubai.” Others shrug it off: “SEC isn’t suing much anyway, the veto’s just for show. China can’t catch American work ethic.”
The Backstory: FIT21’s Broken Promise
The bill clearly split oversight between the SEC and CFTC, easing years of confusion. Trump countered with warnings that “China would exploit loose rules and dominate markets.” The fallout feels familiar to tariff shocks hitting EU exports. Since the veto, volumes are down 15%, and offshore intermediaries emerge as the quiet winners while the U.S. market sits in limbo.
Winners, Losers & Global Ripple
Winners: Offshore exchanges thriving amid U.S. paralysis; China’s PBOC consolidating influence.
Losers: Domestic platforms and developers, pivoting toward AI hybrids as ETF hopes stall.
Across global crypto, regulation keeps choking adoption, forcing constant adaptation. History shows the sector bends, not breaks.
As traders put it: “Trump vetoed a China trap, or handed them the farm? Survivors adapt, laggards get rekt.”
The world feels chaotic now, but clarity always comes later.
