U.S. Secretary of Defense Pete Hegseth has publicly declared his long-time support for Bitcoin (BTC), calling the cryptocurrency a tool for projecting national power. The statement, first reported by Watcher.Guru, marks a significant moment for the intersection of digital assets and U.S. defense strategy, signaling a potential shift in how the Department of Defense views decentralized finance.
Hegseth’s endorsement emphasizes Bitcoin’s role beyond mere investment, seeing it as a mechanism for enhancing American influence globally. This perspective aligns with broader discussions about financial sovereignty and technological leadership. While Hegseth did not provide specific policy proposals, his statement carries weight as it comes from the head of the world’s largest military budget. The defense sector now has a top official openly advocating for cryptocurrency adoption, which could accelerate institutional acceptance within government agencies.
In a related development, U.S. Representative Lance Gooden argued that Bitcoin has become a “geopolitical weapon” used by multiple adversaries. Gooden’s remarks followed confirmation from Pentagon leadership. According to reporting by the TFTC agency, Secretary Hegseth told Gooden that the Department of Defense is actively involved with Bitcoin in classified operations designed to counter what Hegseth described as “China’s digital authoritarianism.”
Hegseth was quoted directly as saying: “I am a long enthusiast of Bitcoin and crypto potential, and a lot of the things we are doing, enabling it or defeating it, are classified efforts that are ongoing inside our department, which do provide us a lot of leverage in a lot of different scenarios.”
In recent Senate testimony, Admiral Samuel Paparo, commander of the US Indo-Pacific Command, described Bitcoin as having “incredible potential” as a tool with cybersecurity and wider strategic uses. Paparo told the Senate, “We have a node on the Bitcoin network right now. Bitcoin has direct implications for power projection.”
Representative Gooden laid out what he sees as a multi-front national security landscape for Bitcoin. He argued that Iran is demanding Bitcoin as a toll for transit through the Strait of Hormuz, that North Korea-linked hackers are using Bitcoin in ransomware campaigns, and that China is “believed to be stockpiling substantial holdings as part of its strategic reserve.” Gooden framed his conclusion plainly: “Over the past decade, Bitcoin has evolved from a fringe asset into a matter of national security.”
The geopolitical angle is supported by estimates from the Bitcoin Policy Institute (BPI), which reports that China holds approximately 194,000 BTC, while the United States holds approximately 328,000 BTC. For Gooden, those figures underscore the shift underway: Bitcoin is no longer treated as a speculative asset in finance committees but as an instrument relevant to power projection, economic conflict, and reserve accumulation.
As of this writing, BTC is trading at approximately $76,384, marking modest gains of 1% within the last 24 hours after probing the $75,000 support level on Wednesday.
