In today’s Bitcoin news, the United States and China are no longer just competing over semiconductors, trade routes, and military influence; they are now fighting to dominate Bitcoin.
As President Trump announced plans to establish a Bitcoin strategic reserve and U.S. military commanders openly testified that BTC can be used as a tool for power projection, the conversation has shifted from “should governments own Bitcoin” to “which government owns the most.”
The United States cannot lose the Bitcoin race to China.
As Beijing amasses massive BTC reserves and deploys its surveillance digital yuan, America must fully implement Bitcoin’s strategic reserve, mining dominance, and innovation-friendly rules.
Military already… pic.twitter.com/yLv9TIEK3g
–Jessica Gonzales (@lil_disruptor) May 19, 2026
If Bitcoin becomes a reserve asset at the nation-state level, like gold or oil before it, then the country that accumulates the most, controls the most mining infrastructure, and sets the rules for its use could hold a decisive advantage in the next era of global finance.
This continued race to dominate the BTC space comes as the leading digital asset struggles to reclaim $80,000. BTC USD is relatively stable on the day, up +0.3% and trading at around $77,300.
(SOURCE: TradingView)
Bitcoin News Today: Why Governments Now View BTC as a National Security Asset
The race for digital gold can be compared to the space race of the 1960s, where control of new territories holds immense power. In this context, Bitcoin is the new territory, and its dominance extends beyond finance.
The historic dominance of the U.S. dollar has allowed the United States to impose sanctions and project global influence through financial control. However, digital assets are now challenging this structure. As opinion columnist Gooden noted, the leading country in digital assets could redefine how money flows and how global power is exercised.
The US government reportedly holds more than 200,000 BTC, mostly from seizures and enforcement actions, making it one of the largest holders in the world. The shift in perception from viewing Bitcoin as contraband to a strategic asset is significant.
Legislation is evolving to support U.S. leadership in regulating digital assets. The Crypto Market Structure Bill, along with the CLARITY and GENIUS Acts, aims to keep crypto companies and talent in the United States, preventing them from moving to more lenient regulatory environments abroad.
The American strategic position: what Washington is really building
JUST IN:
Four-star military officer Admiral Samuel Paparo confirms that the United States operates a Bitcoin node.
"We currently have a node on the Bitcoin network. We perform a number of operational tests to secure and protect networks using the Bitcoin protocol." pic.twitter.com/4JIOIMtlTW
– Bitcoin Magazine (@BitcoinMagazine) April 22, 2026
Four-star military officer Admiral Samuel Paparo confirms that the United States operates a Bitcoin node.The military’s position on Bitcoin is becoming more and more concrete. The US Commander for the Indo-Pacific, Admiral Samuel Paparo, testified before Congress that Bitcoin could be used for power projection, mentioning that the military had deployed an active node for operational testing.
Secretary of War Pete Hegseth affirmed its usefulness against China’s digital authoritarianism, declaring, “Yes and yes.” Pentagon official Maj. Jason Lowery pointed out that Bitcoin’s proof-of-work mechanism imposes a physical cost on network attacks, thereby strengthening cyber defenses.
Institutionally, BlackRock’s regulated Bitcoin products are showing growing demand for BTC, indicating that major players view it as a long-term asset rather than a transaction.
The United States is also at the forefront of Bitcoin mining, particularly after the 2021 Chinese ban, with domestic mining increasingly recognized as critical infrastructure vital to securing the network.
China’s Counterattack: The Two-Track Strategy Explained
(SOURCE: CoinGecko)
In other Bitcoin news today, China’s strategy in the US-China crypto competition is more complex than a simple crackdown narrative suggests, involving two parallel approaches.
First, the digital yuan has moved beyond domestic trials, with applications in civil servant salaries, cross-border settlements, and trade with Africa and the Middle East. This aims to create a payments infrastructure that bypasses the US-led financial system and reduces exposure to dollar sanctions.
Second, despite the domestic crypto ban, China held around 190,000 BTC, mostly seized during the 2019 PlusToken scam, making it the second-largest Bitcoin holding state.
This duality is significant: China publicly bans crypto while storing it as a state asset. The CCP promotes a centralized digital currency for control while accumulating decentralized Bitcoin.
Additionally, China influences global Bitcoin mining through companies like Bitmain and MicroBT, which dominate the hardware supply chain. Control of this supply chain provides substantial leverage over the future of Bitcoin mining.
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The article Bitcoin News Today: Why the US and China are in a crypto space race appeared first on 99Bitcoins.
