US Defense Secretary Pete Hegseth told the House Armed Services Committee on Thursday that Bitcoin projects inside the Pentagon are “classified and ongoing,” positioning the asset as a lever of American power at a time when rival nations are expanding their crypto footprints.
Hegseth’s remarks
Hegseth, who disclosed personal Bitcoin holdings in his 2025 financial filings, did not hold back in front of the committee.
He stated:
“I am a long enthusiast of Bitcoin and crypto potential. 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.”
The comments came in response to questions about whether the US is securing a strategic advantage in technology.
Military already running a node
Hegseth’s remarks follow a separate disclosure last week from Admiral Samuel Paparo Jr., head of US Indo-Pacific Command, who confirmed the military is running a live Bitcoin node and testing the protocol operationally.
Paparo said:
“We’re not mining Bitcoin. We’re using it to monitor.”
Russia and China in the picture
The geopolitical backdrop gives the comments added weight.
Russia now accounts for roughly 16% of global Bitcoin mining hashrate, making it the second-largest mining hub worldwide, according to an FT analysis from February.
China, despite its 2021 domestic ban, still represents nearly 12% of global mining through underground and offshore operations.
Both countries are increasingly using digital assets to settle energy transactions and soften the blow of US-led financial sanctions.
Texas Republican Lance Gooden said during the hearing that Bitcoin has evolved “from a fringe asset into a matter of national security,” pointing to Iran demanding Bitcoin for transit access, North Korean ransomware activity, and China’s accumulation strategies.
Hegseth echoed that framing, positioning Bitcoin as a counterweight to what he described as China’s digital control model.
