Rising tensions between the US and China could lead to a full-blown financial tussle that impacts the cryptocurrency market.
It’s likely that the US Treasury Department will impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens, according to Bloomberg.
Added to that is the main message from a recent interview of US Representative Brad Sherman with MarketWatch which seems to hint at efforts to get China to budge on key terms with regards to Chinese companies’ involvement in the US market.
Sherman notes that the newly-introduced Holding Foreign Companies Accountable Act is not designed to get Chinese companies delisted from the US market but rather to force them to adhere to existing standards in the capital market.
“The purpose here is not to delist or de-register; it’s to demand that China do what every other country has done and agree that if their companies want to participate in U.S. capital markets, they agree to live by US capital-markets rules,” Sherman argued. “It’s time for China to blink first for the benefit of investors.”