A U.S. congressman has framed Bitcoin as a crucial battleground in the nation's economic competition with China, urging Washington to dominate the asset's infrastructure to secure its global power. The call to action comes as the Trump administration signals progress on a plan to create a national Bitcoin stockpile.
"The country that leads in digital assets will shape how money moves, how sanctions are enforced and how global power is projected," Representative Lance Gooden said in a May 19 opinion piece. "While Washington debates, Beijing is executing a long-term strategy."
Gooden pointed to China's dual strategy of promoting a centralized digital yuan for surveillance while also maintaining the world's second-largest state-held Bitcoin reserve. This allows Beijing to gain leverage regardless of how the global financial system evolves, he argued. The U.S. is the largest known sovereign holder with 328,372 BTC, primarily from asset forfeitures.
The congressman's argument leans on recent testimony from top military leaders and moves from the White House. Secretary of War Pete Hegseth and U.S. Indo-Pacific Commander Admiral Samuel Paparo both testified in recent months that Bitcoin can be leveraged as a tool of power projection. This follows President Donald Trump's March 2025 executive order to establish a U.S. Strategic Bitcoin Reserve, a plan which a top crypto adviser recently said has achieved a "breakthrough."
The push for a national reserve has gained momentum, according to Patrick Witt, a member of the President’s Council of Advisors for Digital Assets. Witt said administration officials were finalizing the legal groundwork for the government to securely hold and manage Bitcoin, with an announcement forthcoming.
The plan could see the U.S. government's Bitcoin holdings, currently valued at over $25 billion, grow substantially. Coinbase CEO Brian Armstrong has suggested the value could exceed $1 trillion if Washington follows through. Senator Cynthia Lummis's BITCOIN Act, first introduced in July 2024, proposes allowing the government to purchase up to 1 million BTC over five years.
The strategic posturing comes as other nations explore cryptocurrencies to navigate geopolitical pressures. Iran, facing U.S.-Israeli conflict and a naval blockade, has reportedly begun offering maritime cargo insurance for passage through the Strait of Hormuz, with payments settled in cryptocurrency. The plan, which could generate over $10 billion annually for Tehran, is seen by many as a way to bypass traditional financial systems and sanctions.
"Our failure to act will cede the future of financial power to the CCP, which uses technology to surveil, coerce and control," Gooden said. "The United States doesn’t get to choose whether this race happens — only whether we win it."
This article is for informational purposes only and does not constitute investment advice.
