Bitcoin treasury leader Strategy has raised significant national security concerns in a recent letter to MSCI, arguing that the exclusion of several crypto-buying firms from its indices would hinder the U.S. government’s objectives. The firm, based in Tysons Corner, Virginia, contends that such a move could undermine the Trump administration’s supportive stance on digital assets.
In its 12-page letter, Strategy made a strong case against MSCI’s proposal to exclude companies whose digital asset holdings exceed 50% of their total assets from its investment products. The letter asserts that implementing this threshold would not only stifle innovation and economic development but could also have adverse impacts on national security, particularly at a time when the administration has emphasized pro-innovation policies.
“MSCI should decline to implement its proposal,” the letter urges, highlighting the potential negative consequences of such a discriminatory standard. Strategy posits that crypto-buying firms are legitimate companies, as opposed to investment funds, and asserts that the proposed threshold is arbitrary and unworkable.
Additionally, Strategy emphasized JPMorgan’s warning that exclusion from MSCI could lead to outflows of up to $2.8 billion from the firm if the proposal moves forward. The financial giant expressed concerns that such a restrictive measure would disrupt market dynamics and limit investor options.
The letter also pointed to the increasing number of firms engaging in crypto purchases, including notable names like Trump Media & Technology Group. This trend reflects a growing acceptance of digital assets in the corporate landscape, which Strategy argued should not be stifled.
Concerns about MSCI’s perceived neutrality were also raised, suggesting that imposing criteria that discriminates against a specific asset class could affect its credibility in the eyes of regulators and market participants alike.
Strategy is actively rallying support on social media, urging followers to spread the message and engage with MSCI on this matter. As for the company’s stock, it closed above $184, albeit down more than 2% on the day, reflecting a broader trend of declining prices as interest in newly debuted crypto-buying firms wanes.
The backdrop of the discussion includes recent legislative developments surrounding stablecoins and other crypto initiatives as outlined by the White House. The GENIUS Act, which subjects stablecoin issuers to stricter regulations, aims to address national security concerns related to potential misuse of digital assets by foreign actors.
Former President Trump has reiterated the importance of the U.S. maintaining its technological lead in the crypto space, especially in light of competitive pressures from nations like China. He has framed the country’s adoption of digital assets as a strategic advantage, citing the need for the U.S. to stay ahead in a rapidly evolving global landscape.
