Crypto's Role in National Security Remains Unaddressed

The Trump administration's latest national security strategy, released recently, does not mention cryptocurrency or blockchain technologies, despite their growing integration within the global financial system.

This omission is notable, especially as President Donald Trump has previously expressed interest in ensuring that the U.S. remains competitive against countries like China in the crypto space. CIA Deputy Director Michael Ellis highlighted the need for the U.S. to be strategically positioned in technological competitions, including cryptocurrency.

However, the strategy emphasizes the importance of AI and quantum computing over cryptocurrencies. The document does suggest a desire to preserve and grow America's financial sector dominance, which could imply an indirect reference to digital finance and innovation.

Trump's administration has previously supported various crypto policies, including the enactment of the GENIUS Act for stablecoin regulation and the establishment of a Bitcoin reserve. Despite these efforts, the absence of crypto in the new strategy raises concerns about how the government plans to address emerging digital economies and their implications for national security.

Bitcoin was trading below $90,000 as the market responded to the strategy's implications, while expectations of a Federal Reserve interest rate cut influence crypto market dynamics. The report indicates increased borrowing and inflation risks tied to proposed NATO defense spending increases from 2% to 5% of GDP, showcasing potential economic impacts tied to national security decisions.

Source: Cointelegraph.