U.S. Defense Chief Says Bitcoin and Crypto Are Part of Classified Pentagon Work

Highlights:

• Pete Hegseth confirmed the Pentagon is running classified crypto efforts inside the department.
• Hegseth agreed that Bitcoin can serve as a power projection tool and said he has long supported crypto.
• Lawmakers say Bitcoin has moved from a fringe asset into a direct U.S. national security concern.

U.S. Secretary of War Pete Hegseth told Congress on Thursday that the Defense Department is working on classified efforts related to Bitcoin and other cryptocurrencies. Speaking at a House Armed Services Committee hearing, Hegseth said the technology is part of broader plans to project power and counter rivals like China. 

The remarks came after Representative Lance Gooden of Texas asked whether Bitcoin can serve as a tool for power projection. Gooden also asked whether the Defense Department has any wider plans to help the United States gain a strategic edge in Bitcoin and push back against China’s digital influence. 

Bitcoin Moves Into National Security Focus

Gooden told the hearing that Bitcoin has moved from a “fringe asset” into a national security issue. He pointed to several risks and developments involving foreign actors. He said Iran had demanded Bitcoin as a toll for transit through the Strait of Hormuz. He also said North Korean cyber actors had used Bitcoin in ransomware campaigns, while China was believed to be holding large amounts as part of a strategic reserve.

Gooden also referred to comments from Admiral Paparo, the commander of U.S. Indo-Pacific Command. According to Gooden, Paparo said Bitcoin has direct links to power projection and noted that Indo-Pacific Command was operating a node on the Bitcoin network. 

When Gooden asked whether Hegseth agreed that Bitcoin could serve as a tool to project power, the defense chief gave a direct answer. Hegseth said, “yes and yes.” He also said he has long supported the potential of Bitcoin and crypto.

BREAKING: US SECRETARY OF WAR JUST SAID #BITCOIN IS NOW A "MATTER OF NATIONAL SECURITY"

THE US GOVERNMENT IS ABOUT TO GIVE A MASSIVE UPDATE ON THE STRATEGIC BTC RESERVE IN WEEKS

THIS IS HUGE 🔥 pic.twitter.com/6crZBEafhC

— The Bitcoin Historian (@pete_rizzo_) April 29, 2026

Hegseth Says Pentagon Crypto Efforts Remain Classified

Hegseth did not give details about the Pentagon’s crypto-related efforts. However, he said many of the department’s activities around the technology remain classified. He described them as “classified efforts that are ongoing inside our department.”

He also said those efforts include both enabling and defeating crypto-related technology. That wording suggests the Pentagon may be looking at digital assets from more than one side. On one side, the department may study how Bitcoin and crypto infrastructure could support U.S. strategic goals. On the other hand, it may also explore ways to counter hostile use by rival states, cyber groups, or other actors.

Hegseth said these efforts provide the department with leverage in different scenarios. He did not explain those scenarios in public. Because he called the work classified, the hearing did not provide details on the tools, teams, budget, or operations involved.

The discussion shows that Bitcoin and digital assets are no longer only about trading or investment. Lawmakers are now asking how crypto could affect U.S. national security.

U.S. BTC Reserve Plan Gains Attention

Hegseth’s remarks also come at a time when Bitcoin is gaining more attention inside U.S. policy circles. Just days earlier, Patrick Witt, the White House’s lead crypto adviser, said the administration is still working on President Donald Trump’s plan for a strategic Bitcoin reserve.

Speaking at the Bitcoin conference in Las Vegas on April 27, Witt said officials are reviewing the legal and operational steps needed to secure the government’s existing Bitcoin holdings. The focus is not only on holding digital assets but also on creating a clearer structure for managing them.

🚨JUST NOW: 🇺🇸 White House Executive Director Patrick Witt speaks on the Strategic Bitcoin Reserve-

“There will be a BIG announcement in the next few weeks” pic.twitter.com/dHICukxIVM

— Coin Bureau (@coinbureau) April 28, 2026