President Donald Trump has framed cryptocurrency as a national security issue

President Donald Trump has made cryptocurrency a key part of his administration’s agenda, warning that China could become the dominant force in digital assets if America doesn’t take the lead.

“I’m very much in favor of crypto, very much in favor, because otherwise China is going to take it over,” Trump said on Sunday in an interview with NBC News.

He added that he’s known about crypto “for a long time” and supports it. “I want crypto. I think crypto’s important because if we don’t do it, China’s going to do it.”

Trump’s administration has made several changes to U.S. policy on cryptocurrencies. He appointed David Sacks, former PayPal executive, as the “AI & Crypto Czar” to spearhead the administration’s strategy in these domains.

The administration also created a special task force within the SEC to adjust regulations and make them friendlier to crypto companies.

These moves mark a departure from the previous administration’s approach to crypto, which began with a crackdown on crypto firms and was later adjusted.

Trump criticized the Biden administration for shifting its stance on crypto “a little bit” and tying it to political gain. He claims his own support for crypto began “long before” his current presidential run.

However, Trump’s strong stance on crypto has also drawn scrutiny, particularly regarding any potential conflicts of interest.

Two companies linked to Trump – CIC Digital LLC and Fight Fight Fight LLC – collectively own 80% of all TRUMP tokens, which are sold via Trump’s own website and social media channels.

These tokens have brought in roughly $350 million from sales and fees since launching on January 17. The tokens are named after Trump and feature his likeness.

When asked directly if he benefits financially from the token, Trump replied: “I haven’t even looked. Should I contribute my real estate too? I don’t think so.”

Further controversy arose when Trump announced a special dinner on May 22 specifically for the top 220 TRUMP token holders. Following this announcement, the token’s price surged by 50%.

Democratic Senators Elizabeth Warren and Adam Schiff have called for an investigation into the possibility of “pay to play” behavior, while Republican Senator Cynthia Lummis, a known supporter of Bitcoin, expressed discomfort with the arrangement.

Despite these issues, Trump remains firm in his pro-crypto position, stating that crypto is “too important to ignore” and should be a national priority.

He continues to present the choice as simple: either America leads in crypto, or China will take control, a message he repeats frequently in his public appearances.

The situation underscores the growing tension between national strategy, personal business interests, and the rapidly changing world of digital currencies.