Secretary of War Pete Hegseth confirmed to Rep. Lance Gooden that the Department of Defense is actively using bitcoin in classified operations to counter "China's digital authoritarianism."
His exact words: "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."
This follows last week's revelation that the US military is already running a Bitcoin node. Admiral Samuel Paparo, head of US Indo-Pacific Command, told the same committee: "We have a node on the Bitcoin network right now. Bitcoin has direct implications for power projection."
Meanwhile, Rep. Gooden laid out the case that bitcoin has become a geopolitical weapon being used by multiple adversaries simultaneously. Iran is demanding bitcoin as a toll for transit through the Strait of Hormuz. North Korea-linked hackers are leveraging it in ransomware campaigns. And China is "believed to be stockpiling substantial holdings as part of its strategic reserve."
The Bitcoin Policy Institute estimates China holds approximately 194,000 BTC. The United States holds approximately 328,000 BTC.
Gooden's framing was direct: "Over the past decade, bitcoin has evolved from a fringe asset into a matter of national security."
The era of bitcoin as a speculative curiosity discussed by finance committees is over. It's now being discussed in armed services hearings as an instrument of power projection, a tool of economic warfare, and a strategic reserve asset that nation-states are quietly racing to accumulate.
