‘National security’ at risk if MSCI delists crypto Treasuries, warns Bitcoin giant’s strategy

Strategy argued in a letter sent to MSCI on Wednesday that excluding several cryptocurrency buying companies from its indices could affect the United States’ ability to protect itself.

The Tysons Corner, Virginia-based firm raised national security concerns in its 12 page appeal to the global financial giant, signaling the Trump administration’s pro-cryptocurrency stance.

“MSCI should refuse to implement your proposal,” the letter states. “It would undermine the federal government’s goal of promoting digital assets while stifling innovation, impeding economic development, and harming national security.”

In its letter, Strategy also stressed that cryptocurrency purchasing companies are companies, not investment funds, which are not eligible for inclusion. What’s more, the bitcoinThe purchasing company described the 50% threshold as “arbitrary, discriminatory and unworkable.”

JPMorgan warned Last month, Strategy’s fund outflows could total $2.8 billion if MSCI moves forward with its proposal, which would exclude from its products that guide allocations companies whose digital asset holdings represent 50% or more of total assets.

“MSCI’s proposal to exclude companies whose balance sheets consist of more than 50% digital assets is misguided and would have deeply damaging consequences,” the letter said.

Strategy’s letter noted that the Trump administration has prioritized “pro-innovation policies,” while positioning itself as a supporter of digital assets. That makes this “precisely the wrong time to take steps that undermine this innovative technology,” the letter argued.

At one point, the letter highlighted a group of companies that began buying cryptocurrencies this year. including Trump Media & Technology Group, the technology and social media company named after President Trump.

Strategy’s letter warned that MSCI would be risking its perceived neutrality as an index provider, in the eyes of both regulators and market participants, if the company established index credibility criteria that effectively “discriminate against one type of asset.”

On Strategy’s website, the company asked readers to share the letter on LinkedIn and X, as well as providing a way for them to email MSCI about the issue directly.

The strategy changed hands above $184 at the end of trading on Wednesday, a drop of more than 2% on the day, according to Yahoo Finance. The company’s share price has fallen nearly 53% over the past six months, as enthusiasm fades around numerous cryptocurrency buying companies that debuted this year.

In July, following the passage of stablecoin legislation, the White House saying that “the GENIUS Act strengthens our national security” by subjecting stablecoin issuers to anti-money laundering rules, empowering agencies to combat illicit activities, and requirements such as freezing functions.

Senator Elizabeth Warren (D-MA) increase national security concerns with the stablecoin bill itself in February, citing the ability of foreign actors to circumvent sanctions using the technology. He also said the bill would benefit a Trump-backed administration. decentralized finance project called Global financial freedom.

More broadly, Trump has characterized the nation’s adoption of cryptocurrencies as crucial for the United States to maintain a technical advantage against global adversaries like China.

“Now China is getting very involved in this,” he said in an interview with C.B.S. last month. “I’m very proud to say that we are way ahead of China and everyone else.”