Trump’s Silent Treatment of Crypto: A Geopolitical Puzzle

WASHINGTON – The conspicuous absence of cryptocurrency and blockchain technology from the recently released 2025 U.S. National Security Strategy has sent ripples through the digital asset world, raising questions about the administration’s long-term vision for the rapidly evolving sector. While artificial intelligence, biotechnology, and quantum computing were prominently featured as key technological priorities, the omission of crypto – despite a year of surprisingly pro-crypto policy moves under President Trump – feels less like an oversight and more like a deliberate strategic choice.

The contrast is stark. Just this past July, Trump signed the GENIUS Act, a bipartisan effort to establish a federal framework for the $250 billion stablecoin market. He’s publicly declared his intention to prevent China from dominating the crypto landscape, telling CBS’s 60 Minutes last month, “I won’t let them become number one in the world in crypto.” Yet, these pronouncements, and the actions backing them, are conspicuously absent from the 96-page National Security Strategy document.

“It’s a head-scratcher, frankly,” says Dr. Eleanor Vance, a geopolitical risk analyst at the Atlantic Council. “The administration has been actively engaging with the crypto space, recognizing its potential for both economic innovation and national security implications. To completely sideline it in a document outlining national priorities suggests a more nuanced, and potentially compartmentalized, approach.”

The Shadow of Grey Market Activity

Some analysts speculate that the lack of explicit mention doesn’t necessarily signal a disinterest, but rather a recognition that much of the significant activity in the crypto space is occurring outside of traditional regulatory frameworks – in what’s often referred to as the “grey market.” This raises concerns about illicit finance, sanctions evasion, and the potential for destabilizing financial flows. The administration may be choosing to address these challenges through covert channels rather than public declarations.

This theory gains traction when considering the increasing use of stablecoins in sectors like online gambling. PokerStrategy reports a growing trend of operators adopting blockchain rails for faster, more transparent transactions. While not inherently malicious, this highlights the potential for crypto to facilitate activities that fall outside the purview of traditional financial oversight.

The global rise in crypto adoption is undeniable. Ownership jumped 9.9% this year, now exceeding 600 million users worldwide. Furthermore, stablecoins now account for 30% of all on-chain transfers, demonstrating their increasing importance in the digital economy. According to a 2023 report by the United Nations Conference on Trade and Development (UNCTAD), developing countries account for over 40% of global crypto transaction volumes, highlighting the technology’s potential to reshape financial inclusion – and potentially challenge the dominance of traditional financial institutions.

States Take the Lead While Washington Watches

While the federal government appears to be taking a wait-and-see approach, several states are forging ahead with their own crypto initiatives. New Hampshire became the first state to establish a Bitcoin reserve in May, authorizing the state treasurer to invest up to 5% of state funds in Bitcoin through HB 302. Texas followed suit, appropriating $10 million for its own reserve and recently purchasing $5 million in BlackRock’s Bitcoin ETF as a placeholder during custody negotiations, as reported by the Texas Tribune.

This state-level activity suggests a growing recognition of Bitcoin’s potential as a store of value and a hedge against inflation, particularly in a world grappling with economic uncertainty. It also underscores a frustration with the slow pace of federal regulation, prompting states to take matters into their own hands.

Market Reaction and the Fed’s Influence

The release of the National Security Strategy coincided with a brief dip in Bitcoin’s price, falling below $90,000 before recovering to around $93,000. Traders are now keenly focused on the upcoming Federal Reserve meeting and the potential for a 25 basis point rate cut. CME’s FedWatch tool currently indicates an 87% probability of such a cut, and analysts at the London Crypto Club predict that a shift in monetary policy could unleash a “powerful structural tide” for risk assets, including crypto.

MicroStrategy’s continued accumulation of Bitcoin – adding another 10,624 BTC for $962 million last week – further demonstrates institutional confidence in the long-term prospects of the asset. The company now holds a total of 660,624 BTC, acquired at an average cost of $74,696.

The administration’s past actions, including exploring the use of Greenland as a “crypto-military frontier,” suggest a more active engagement than the National Security Strategy lets on. The document does include a single reference to “preserving America’s financial sector dominance” through “leadership in digital finance and innovation,” but this is widely interpreted as a vague acknowledgment of blockchain infrastructure without offering concrete details.

Ultimately, the crypto community appears to be taking its cues from market conditions and the Federal Reserve’s policy decisions rather than relying on explicit guidance from Washington. The silence from the administration may be a calculated move, allowing for flexibility and agility in a rapidly evolving landscape. However, it also creates uncertainty and leaves the future of crypto regulation in the United States hanging in the balance.