The Strategic Oversight of Bitcoin in Trump's National Security Strategy

The absence of Bitcoin in President Donald J. Trump's 2017–2021 National Security Strategy (NSS) represents a critical misalignment between emerging technological trends and geopolitical priorities. While the 2025 Executive Order establishing a Strategic Bitcoin Reserve marked a dramatic pivot in U.S. digital asset policy, the earlier omission underscores a broader disconnect between asset allocation frameworks and the evolving role of cryptocurrencies in global finance. This analysis explores the geopolitical and technological factors that contributed to Bitcoin's exclusion from the 2017 NSS and examines the implications for investors navigating the intersection of national strategy and digital assets.

Geopolitical Priorities and Fiscal Constraints

The 2017 NSS prioritized traditional national security measures, including defense spending and an "America First" agenda, which emphasized fiscal expansion and shifting financial burdens to NATO allies and Asian partners. According to a U.S. Treasury report, the strategy urged allies to increase defense budgets to 5% of GDP, a move likely to exacerbate global government borrowing and inflationary pressures. These fiscal dynamics reduced the appeal of riskier assets like Bitcoin, which thrives in environments of monetary expansion but struggles under high inflation and rising bond yields.

The strategy's focus on restricting mass migration further tightened labor markets, compounding inflationary risks and limiting the economic conditions conducive to cryptocurrency adoption. By prioritizing short-term fiscal discipline and traditional defense metrics, the administration overlooked Bitcoin's potential as a hedge against currency devaluation and a tool for geopolitical influence-a role now recognized in post-2025 policy shifts according to analysis.

Technopolitical Maturity and Regulatory Ambiguity

In 2017, Bitcoin's technological maturity and regulatory status were still in flux. The Trump administration introduced futures products for Bitcoin, supported by then-CFTC Chairman Christopher Giancarlo, aimed to stabilize the volatile market by introducing institutional participation. While this move successfully deflated the 2017 price bubble, it also reinforced Bitcoin's perception as a speculative asset rather than a strategic reserve.

At the time, the SEC's regulatory purview excluded fully decentralized blockchains like Bitcoin, creating ambiguity that deterred its inclusion in formal asset allocation strategies. This regulatory limbo, combined with the administration's focus on deflating speculative bubbles, contributed to Bitcoin's exclusion from the 2017 NSS. However, the 2025 Executive Order-capitalizing on seized bitcoins and exploring budget-neutral acquisition strategies-reflects a recognition of Bitcoin's strategic value as a store of value and a tool for financial sovereignty according to the White House fact sheet.

The Evolution of Strategic Thinking

The contrast between the 2017 NSS and the 2025 Executive Order highlights a paradigm shift in how governments perceive Bitcoin. Analysts now argue for a U.S. strategic Bitcoin reserve to counter de-dollarization and secure geopolitical influence, particularly in U.S.-China relations. This evolution underscores the importance of aligning asset allocation frameworks with technological advancements and shifting geopolitical dynamics.

For investors, the oversight in 2017 serves as a cautionary tale about the risks of underestimating disruptive technologies. While the Trump administration initially dismissed Bitcoin's strategic potential, its 2025 pivot demonstrates the growing recognition of digital assets as critical components of national and economic security.

Conclusion

The omission of Bitcoin from Trump's 2017 NSS was a product of its time-a period defined by fiscal conservatism, regulatory uncertainty, and a narrow focus on traditional defense metrics. However, the 2025 Executive Order reveals a strategic reevaluation that aligns with Bitcoin's emerging role as a geopolitical asset. For investors, this shift underscores the need to monitor policy developments and integrate digital assets into long-term allocation strategies, particularly as nations increasingly weaponize financial innovation in a de-dollarizing world.