Trump’s Strategy Omits Crypto as $90K Bitcoin Faces Policy Uncertainty
The Trump administration's latest national security strategy leaves out any mention of cryptocurrency or blockchain - a surprising...
Quick overview
- The Trump administration's national security strategy omits cryptocurrency and blockchain, focusing instead on AI, biotech, and quantum computing.
- Despite the omission, the administration has implemented several pro-crypto policies, including the GENIUS Act and a task force for crypto enforcement.
- Bitcoin's value dropped below $90,000 as investors reacted to the national security strategy and anticipated a potential interest rate cut from the Federal Reserve.
- The lack of clear policy direction on crypto in the strategy raises questions about the administration's priorities amid growing national security concerns.
The Trump administration’s latest national security strategy leaves out any mention of cryptocurrency or blockchain – a surprising snub given the president’s repeated calls on the United States to strengthen its position in the global crypto-race. The strategy came out late last week and focused instead on artificial intelligence, biotech, and quantum computing as the core technologies driving US security and economic power.
The administration essentially said that American leadership in these fields will drive the world forward – reinforcing the idea that it’s these next-gen technologies that will keep America at the forefront of geopolitics, rather than digital assets. This stands in a bit of stark contrast to Trump’s comments on CBS’s 60 Minutes a few weeks back, where he said in no uncertain terms that he didn’t want “China to be number one in crypto” – and reiterated his position that all Bitcoin mining should stay right here in the good ol’ US of A.
Senior officials have also been highlighting the national security implications of all this crypto innovation. The CIA’s Michael Ellis had a few words to say back in May about how digital assets represent yet “another area of technological competition” where the US needs to stay ahead of China & other rival nations.
There is, however, one tiny line in the document that mentions protecting America’s “leadership in digital finance and innovation” as part of keeping the US on top in global markets – a possible nod to crypto. Still, we’re not getting any clear policy direction on that one.
The Trump Administration is Pushing Forward on Pro-Crypto Measures
Despite leaving crypto out of the strategy doc, the Trump administration has actually enacted a bunch of pro-crypto policies throughout the year – these moves have been getting us all more comfortable with digital assets and making the feds look a lot more welcoming towards the sector.
Some of the key initiatives include:
- Getting the GENIUS Act passed, which sets up oversight for stablecoins.
- Signing some executive orders to create a task force that deals with crypto enforcement.
- Outlawing a US central bank digital currency (CBDC)
- Telling agencies to just back off on all those crypto-related enforcement actions they had going on.
- And even setting up a Bitcoin reserve from all those digital assets that were seized.
The government is also mulling “budget-neutral” models to buy even more crypto as part of a broader digital-assets strategy.
Bitcoin Trades Below $90,000 as Investors Ponder the Strategy
Bitcoin took a tumble below $90,000 over the weekend as investors digested the national security strategy, along with other macroeconomic signals. The document calls on US allies to chip in a lot more cash to finance NATO’s defense – basically recommending that they up their spending to 5% of GDP. That’s way more than the 2% they’re at now, and this could fuel even more borrowing and higher inflation, making it really tough for central banks to lower interest rates.
For crypto investors, though, all eyes are now on the Federal Reserve’s meeting on Tuesday and Wednesday. CME’s FedWatch tool shows that 88.5% of traders expect a 25-basis-point rate cut, which has historically encouraged investors to take on a bit more risk, which, in this case, could be good for digital assets.
It’s unclear whether this snub of crypto in the strategy is a sign of shifting policy priorities or just a drafting choice – but it does highlight an ongoing tension between all these growing national-security concerns and the administration’s efforts to make the US a global crypto hub.
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