On July 20, 2026, the White House issued an executive order that tightens restrictions on defense contractors using foreign minerals in military supply chains.
The order narrows the waivers that previously allowed contractors to source minerals banned from use. It aims to reduce reliance on foreign critical minerals essential for semiconductor manufacturing.
This move continues a multi-year effort that began with a 2017 executive order targeting US dependence on foreign minerals. The strategy was deepened in March 2025 by Executive Order 14241, which promoted domestic mineral production through Defense Production Act waivers and Department of Defense leases.
In January 2026, Executive Order 14372 penalized poor-performing defense contractors by limiting stock buybacks and dividends, signaling a shift to prioritize military needs over shareholder returns.
The US notably depends on China for processing rare earth elements, lithium, and cobalt, which are critical for advanced electronics and military hardware. Russia controls significant supplies of palladium and nickel, further complicating supply security.
Though the order does not mention cryptocurrencies or blockchain directly, critical minerals are integral to producing ASICs that power Bitcoin mining and GPUs used for Ethereum and AI computations within crypto infrastructure.
Increased domestic mineral production may open investment avenues near crypto. Blockchain-powered supply chain tracking could gain importance as contractors must verify mineral origins under stricter rules.
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