Trump National Security Strategy Excludes Crypto Despite Industry Support

TLDR

• Trump’s new national security strategy focuses on AI, biotech, and quantum computing but does not mention cryptocurrency or blockchain technology.
• The document states America’s core vital national interests revolve around artificial intelligence and quantum computing, leaving out digital assets entirely.
• Trump previously said he wants the US to lead in crypto and doesn’t want China to become number one in the space.
• The administration has been supportive of crypto in 2024, passing the GENIUS Act and creating a strategic Bitcoin reserve from seized assets.
• Bitcoin traded below $90,000 over the weekend as markets await the Federal Reserve’s interest rate decision on Tuesday and Wednesday.

President Donald Trump released his administration’s national security strategy on Friday without any mention of cryptocurrency or blockchain technology. The document outlines the country’s priorities for protecting national interests.

The strategy identifies artificial intelligence, biotech, and quantum computing as the core technologies for US leadership. The administration stated it wants to ensure US technology and standards in these areas drive the world forward.

The omission stands in contrast to Trump’s previous statements about cryptocurrency. Last month, Trump told CBS’ 60 Minutes he does not want China to become number one in crypto. He has also said he wants all Bitcoin mining to take place in the United States.

CIA Deputy Director Michael Ellis made similar comments in May. Ellis said crypto represents another area of technological competition where the US needs to maintain its position against China and other adversaries.

Financial Sector Leadership Mentioned

The document includes one section about preserving America’s financial sector dominance. It mentions using the country’s leadership in digital finance and innovation to ensure market liquidity and security. This could potentially reference cryptocurrency, though the document does not specify.

Trump has supported multiple crypto initiatives in 2024. His administration helped pass the GENIUS Act, which regulates stablecoins and marks the first major federal crypto legislation. The president signed executive orders creating a crypto task force and banning a central bank digital currency.

Federal agencies under Trump dropped many crypto-related enforcement actions. The administration established a Bitcoin reserve using forfeited digital assets rather than new purchases. The government is exploring budget-neutral methods to acquire more digital assets.

Market Response and Federal Reserve Focus

Bitcoin traded below $90,000 over the weekend following the strategy document’s release. The national security plan calls on NATO countries to increase defense spending from 2% to 5% of GDP. Higher government borrowing could drive up inflation and make interest rate cuts less likely.

Crypto markets are focused on the Federal Reserve’s interest rate decision this week. The Fed meets Tuesday and Wednesday to decide on rates. CME’s FedWatch tool shows 88.5% of traders expect a 25 basis point cut.

Lower interest rates historically encourage investors to make riskier investments. A rate cut could support higher prices for Bitcoin and other cryptocurrencies. The market is awaiting the Fed’s announcement before making larger moves.

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