US Commander Calls Bitcoin a Strategic Asset, Lummis Praises Move

• Sen. Lummis feted Admiral Samuel Paparo for calling Bitcoin a tool for US national power.
• Paparo is the first US combatant commander to back Bitcoin as a national security asset.
• China’s reported 194K BTC stash adds pressure on Washington to build a stronger strategy.

Senator Cynthia Lummis praised Admiral Samuel Paparo after the top US military commander publicly backed Bitcoin as a tool for national power. In a post on X, Lummis wrote that she was impressed by Paparo’s “foresight” and use of Bitcoin for national security.

She added that digital assets are becoming part of global power systems and said the United States should bring that industry back home. Lummis also called for Congress to pass the CLARITY ACT to secure the country’s future.

Paparo, commander of the US Indo-Pacific Command, made the remarks during an April 21 Senate Armed Services Committee hearing. He was answering questions from Senator Tommy Tuberville about how Bitcoin could affect US competition with China.

Paparo said Bitcoin has “incredible potential as a computer science tool.” He described it as a peer-to-peer, zero-trust transfer of value and said it has major uses in cybersecurity.

He also said Bitcoin’s proof-of-work system can create costs beyond simple network security, with possible use in both offensive and defensive cyber operations.

Paparo then gave a broader policy view, saying anything that supports all instruments of American national power is beneficial.

The hearing marked the first known instance in which a US combatant commander publicly described Bitcoin as a national security asset during congressional testimony.

China Holdings Adds Pressure

Paparo’s remarks landed during rising US-China tensions. China is believed to control a large Bitcoin stockpile, with some estimates placing holdings at roughly 194,000 BTC.

Much of that supply is tied to the 2019 PlusToken fraud case. Chinese authorities reportedly seized nearly 195,000 BTC, more than 833,000 ETH, and billions of units of other tokens, including XRP, Dogecoin, and Litecoin.

China has never formally declared those assets a strategic reserve, and it has not publicly detailed current holdings. This creates pressure in Washington, where lawmakers increasingly view Bitcoin through a geopolitical lens.

GENIUS Act Faces Banking Pushback

While Bitcoin policy gains support, stablecoin legislation faces delays. US banking groups asked the Treasury Department to extend the public comment period for rules tied to the GENIUS Act.

They want deadlines for three proposals pushed back by at least 60 days after the Office of the Comptroller of the Currency finishes its own rulemaking.

Banks argue the OCC framework will shape the rest of the system. Without it, they say it is hard to judge the rules being prepared by OFAC, FinCEN, and the FDIC.

The American Bankers Association and Bank Policy Institute said they need more time to compare all proposals together. The GENIUS Act is expected to take effect by 2027.

However, growing fights between banks and crypto firms could slow progress further and may also threaten the passage of the CLARITY ACT this year.

Related: CLARITY Act Odds Slip as Lummis Calls This the Last Window