U.S. Defense Secretary Pete Hegseth said Bitcoin can be used as a tool of American power, offering one of the clearest public endorsements yet from a senior national security official of the asset’s strategic relevance. His remarks came during an April 30 congressional hearing, where Rep. Lance Gooden framed Bitcoin not as a speculative technology but as an emerging geopolitical factor tied to sanctions evasion, cybercrime, and strategic competition with China.
Gooden, a Republican congressman from Texas, told Hegseth that “over the past decade, Bitcoin has evolved from a fringe asset into a matter of national security.” He cited Iran’s reported use of Bitcoin in relation to transit through the Strait of Hormuz, North Korean cyber actors’ use of crypto in ransomware activity, and claims that China may be accumulating Bitcoin as part of a strategic reserve. Gooden also referenced recent comments by Admiral Samuel Paparo, commander of U.S. Indo-Pacific Command, saying Paparo had argued Bitcoin has direct implications for power projection.
Gooden then asked: “Do you share the opinion that Bitcoin is a tool to project power? And are there any department-wide initiatives to ensure the U.S. secures a strategic advantage in Bitcoin and combats China’s digital authoritarianism?”
Hegseth responded: “I guess my short answer would be yes and yes.” He continued, “Long an enthusiast of Bitcoin and crypto potential. And a lot of the things we’re 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. I appreciate that. And I share your views.”
Gooden’s framing underscored why the issue is moving beyond niche crypto policy circles. “Over the past decade, Bitcoin has evolved from a fringe asset into a matter of national security. Iran has demanded Bitcoin as a toll for transit through the Strait of Hormuz. North Korean cyber actors have leveraged it in ransomware campaigns, and China is believed to be stockpiling substantial holdings as part of a strategic reserve,” he said. “Just last week, Indo-PACOM Commander Admiral Paparo stated that Bitcoin has direct implications for power projection, And he noted that United States Indo-Pacific Command is operating a node on the Bitcoin network in furtherance of that mission.”
JUST IN: 🇺🇸 US Secretary of Defense Pete Hegseth says the US should secure a strategic advantage in Bitcoin and that he’s a “long enthusiast” of BTC. pic.twitter.com/fgMQbxlFAK
— Bitcoin Magazine (@BitcoinMagazine) April 30, 2026
Paparo’s Bitcoin Node Remark Adds Context
Paparo’s comments are important because they add operational context to Hegseth’s broader endorsement. In testimony delivered the week before Hegseth’s hearing, Admiral Samuel Paparo, who leads U.S. Indo-Pacific Command, said Bitcoin has implications for power projection and stated that USINDOPACOM operates a Bitcoin node. The remark suggests at least some part of the U.S. military sees direct value in understanding or interfacing with the network at the infrastructure level.
A Bitcoin node does not confer control over the network, but it does allow an operator to independently validate blockchain data and interact directly with the system without relying on third parties. In that sense, Paparo’s statement matters less as a technical novelty than as a signal of institutional interest.
The hearing does not establish a formal Pentagon Bitcoin doctrine, and several claims raised by Gooden, including China’s alleged reserve accumulation, were presented without supporting evidence in the exchange itself. Still, Hegseth’s “yes and yes” answer, combined with Paparo’s prior statement about operating a Bitcoin node, marks a shift in how senior U.S. officials are publicly describing the asset: not just as a regulatory subject or criminal-finance risk, but as a technology with potential relevance to state power.
AI Transparency Note: This article was prepared with the assistance of an AI system based on the sources listed and was reviewed, edited, and approved by a human editor before publication. All quotes, data points, and factual claims are intended to be grounded in the cited source material; however, errors cannot be ruled out entirely.
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