Is the US failing at cryptocurrency regulation? A senior official from the People\'s Bank of China (PBOC) is saying just that. According to Xuan Changneng, Deputy Governor of the PBOC, the United States has "failed at regulating cryptocurrencies." This statement comes amidst growing global concerns about the stability and risks associated with digital finance. He specifically cited recent banking failures linked to US lenders involved in cryptocurrency as evidence of this regulatory shortfall.

Xuan argues that the new form of finance, including cryptocurrencies, and other novel technologies require stronger oversight. His comments highlight the PBOC\'s stance on the matter, especially as reflected in their recently released 2025 Financial Stability report, which underscored the importance of regulating crypto activities.

The PBOC\'s critique comes at a time when China has aggressively expanded its crypto-crackdown beyond the mining industry. The People\'s Bank of China (PBOC) has declared that all transactions involving Cryptocurrencies are subject to increased scrutiny.

Xuan also pointed out that cryptocurrencies lend themselves to risks relating to fraud and unlawful transactions, further justifying the need for robust regulation. The question remains: Has the US truly failed at regulating crypto, and what lessons can be learned from China\'s approach? The debate continues to intensify as global financial institutions grapple with the challenges and opportunities presented by the rapidly evolving digital asset landscape.

This situation is expected to change no earlier than September 24, 2025, as the PBOC strengthens its crypto regulations.