Cryptocurrency and blockchain did not receive a mention in Donald Trump’s national security priorities, despite the president’s desire for the US to become a hub for crypto.
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The Trump administration did not mention cryptocurrency or blockchain in its latest national security strategy, despite the industry’s growing ties to the financial system and President Donald Trump’s claim of increased competition from overseas.
Trump’s national security strategy, outlining his administration’s priorities, on Friday, instead said the “core, vital national interests” of the US revolved around artificial intelligence and quantum computing.
“We want to ensure that US technology and US standards — particularly in AI, biotech, and quantum computing — drive the world forward,” the administration said.
The omission of crypto from the national security strategy comes despite CBS’ 60 Minutes last month that he did not want to “have China be number one in the world in crypto” and has previously said he wants all Bitcoin () mining to take place in the US.
CIA deputy director Michael Ellis also that crypto was “another area of technological competition where we need to make sure the United States is well-positioned against China and other adversaries.”
There is, however, one section of the document that states that Trump wants to preserve and grow “America’s financial sector dominance” by using the country’s “leadership in digital finance and innovation” to ensure market liquidity and security, which could be a hint at crypto.
The Trump administration has been supportive of crypto this year, moving forward with a slew of promised policies that have led to more financial institution adoption of the technology.
Trump helped the stablecoin-regulating become law and has signed executive orders creating a crypto task force and banning a central bank digital currency, while also overseeing federal agencies’ abandonment of many crypto-related enforcement actions.
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The administration has also established a Bitcoin reserve and crypto stockpile, comprising forfeited digital assets, while the government is exploring “budget-neutral” methods of acquiring more.
Bitcoin traded below $90,000 over the weekend as the market digested the national security strategy document, which called on US allies to “contribute far more” to defence.
It asked NATO countries to spend 5% of their GDP, up from the current 2%, which would mean heightened government borrowing that would drive up inflation, making it harder for central banks to cut interest rates.
The Federal Reserve’s is what is driving crypto markets, with many hoping for a cut that historically spurs investors to make riskier bets.
The market is expecting interest rates to drop when the Fed meets on Tuesday and Wednesday, with CME’s FedWatch nearly 88.5% betting on a 25 basis point cut.
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