Secretary of Defense Pete Hegseth has reversed a 34-year Pentagon policy, signing a memo on April 2 that authorizes off-duty U.S. service members to carry privately owned firearms on military installations — a decision that lands alongside a downed F-15 and a record defense budget request in what is shaping up to be the most militarily assertive week of Trump’s second term.

Secretary of Defense Pete Hegseth has reversed a 34-year Pentagon policy, signing a memo on April 2 that authorizes off-duty U.S. service members to carry privately owned firearms on military installations — a decision that lands alongside a downed F-15 and a record defense budget request in what is shaping up to be the most militarily assertive week of Trump’s second term. The official Department of War announcement confirmed that Hegseth also published a video statement on X alongside the signed memorandum.

The policy details

The memo inverts the existing default on military base carry permissions. Previously, service members seeking to carry a personal firearm had to obtain explicit authorization from their installation commander. Under the new policy, commanders must affirmatively document a specific safety concern to deny a request — approval is now presumed rather than earned. The change ends a policy that has been in place since 1992, spanning six presidential administrations.

“Our military installations have been turned into gun-free zones — leaving our service members vulnerable and exposed. That ends today,” Hegseth said in his post on X announcing the memo.

The broader context for markets

The Hegseth announcement is the third significant military signal from Washington in a single 24-hour window — arriving alongside the shooting down of a U.S. F-15 over Iran and the submission of a record $1.5 trillion defense budget request. For crypto and risk asset investors, the aggregate message from this week’s geopolitical and fiscal headlines is clear: the U.S. is deepening its conflict posture, which sustains oil price pressure, keeps inflation elevated, and narrows the window for Federal Reserve easing.

As crypto.news has reported, Bitcoin has been trading as a risk-sensitive asset throughout the Iran conflict, de-rating during escalation rather than acting as a traditional safe haven. Until a credible path toward de-escalation and Hormuz reopening emerges, the macro regime remains structurally unfavorable for sustained crypto price recovery.