A significant thaw in the often-frosty trade relations between the United States and China sent a jolt of optimism through global financial markets

The positive momentum came as officials from both nations signaled a mutual willingness to engage in substantive discussions aimed at de-escalating the ongoing tariff conflict.

A significant thaw in the often-frosty trade relations between the United States and China sent a jolt of optimism through global financial markets late Tuesday and into Wednesday, propelling risk assets, including Bitcoin, sharply higher.

The positive momentum came as officials from both nations signaled a mutual willingness to engage in substantive discussions aimed at de-escalating the ongoing tariff conflict.

This optimism was further fueled by pending legal woes emerging for President Donald Trump's personal cryptocurrency ventures, sparking an investigation by the Senate Permanent Subcommittee on Investigations.

Officials signaled willingness to discuss U.S.-China tariff issues

The potential for a resolution to the US-China tariff saga, which has weighed heavily on the global economy, was signaled by Treasury Secretary Scott Bessent.

Announcing plans to travel to Switzerland this weekend for trade talks with his Chinese counterparts, Bessent said, "The current tariffs and trade barriers are unsustainable, but we don't want to decouple."

This statement, reported by Variety, signaled a potential shift in the US approach.

Significantly, a spokesperson for China's Ministry of Commerce later confirmed Beijing's readiness to engage, responding to a question posed during a regular news briefing on Wednesday morning.

"Recently, senior U.S. officials have made a series of remarks hinting at adjustments to tariffs and have expressed, through various channels, a desire to engage with the Chinese side on tariff-related issues," the spokesperson said, according to a CoinDesk report.

China has carefully assessed these messages from the U.S. side and, after fully considering global expectations, China's own interests, and the appeals of American industries and consumers, has decided to agree to engage with the U.S.

This news of impending high-level dialogue triggered an immediate positive reaction in markets.

Bitcoin (BTC) surged approximately 3%, climbing to around $97,200.

Futures contracts for major U.S. stock indices also jumped, with both Nasdaq 100 and S&P 500 futures rising about 1% in the hours following the announcements.

Trump's crypto ventures draw senate scrutiny

While markets buzzed with trade hopes, a separate storyline unfolded as President Donald Trump's personal and business ties to the cryptocurrency industry came under the microscope of the Senate Permanent Subcommittee on Investigations.

Senator Richard Blumenthal, the ranking Democrat on the subcommittee, has launched a preliminary inquiry into potential conflicts of interest and legal violations arising from these ventures.

On Tuesday, Senator Blumenthal dispatched letters to executives linked to Trump-affiliated crypto entities.

The recipients included Bill Zanker of Fight Fight Fight LLC, the entity linked to the TRUMP memecoin, and Zach Witkoff, a co-founder of World Liberty Financial, which is launching a USD1 stablecoin.

Other letters went to entities such as CIC Digital LLC, involved in Trump's NFT endeavors, and DTTM Operations LLC, which manages President Trump's intellectual property rights.

"The Permanent Subcommittee on Investigations is conducting a preliminary inquiry into potential conflicts of interest and violations of the law arising from President Trump's cryptocurrency ventures … and associated businesses' financial dealings with foreign nationals, foreign governments and other cryptocurrency firms," both letters stated.

They went on to query whether these businesses "may be enabling the violation of government ethics requirements."

The inquiries sought detailed information on the ownership structures of these entities, the sources of investment in each (specifically inquiring about involvement from foreign governments), how each business generates revenue, and the protocols they follow for screening out participation by individuals subject to prosecution or investigation.

Senator Blumenthal also requested copies of any financial statements or reports prepared for each entity.

Given that Democrats are in the Senate minority, Senator Blumenthal currently lacks the power to issue subpoenas for this inquiry. However, this effort would be possible if his Republican counterpart, Senator Ron Johnson, were to co-sign the probe.

Senator Johnson's office did not immediately respond to a request for comment.

This Senate probe builds upon a broader unease that has been emerging among Democrats regarding President Trump's crypto activities.

Earlier this week, Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, objected to a joint hearing on crypto market structure legislation. Instead, she opted to host a separate hearing focused specifically on these crypto tie-ups.

Moreover, a recent statement by Senator Ruben Gallego and several other Senate Democrats, signaling that they would not support the current iteration of the Senate's stablecoin bill, also appears linked to these concerns.

A key trigger was the announcement by Eric Trump that Abu Dhabi-based investment firm MGX would use the Trump-affiliated USD1 stablecoin for a $2 billion investment into the Binance cryptocurrency exchange.

This signals the potential for Union Gaming to become a major stakeholder in Binance, which is already one of the world's largest cryptocurrency exchanges.

Furthermore, Mena paid tribute to the late congressman's work in highlighting the importance of bipartisan