Mark Esper Advocates for CLARITY Act as Essential National Security Legislation

Former US Defense Secretary Mark Esper has urged the Senate to pass the CLARITY Act, asserting that it is not just a financial services bill but a crucial national security measure. In an op-ed published in the Financial Times, Esper highlighted that ambiguous digital asset regulations could create opportunities for countries like North Korea and China to undermine American financial dominance. He pointed out that China is already investing in state-controlled payment systems to evade US oversight and diminish the dollar's global standing. Esper, who is also a member of the Coinbase Global Advisory Council, stated, "I have long argued that China is the greatest strategic threat of our lifetime." He emphasized that the CLARITY Act would provide the US with better tools to close crypto-related loopholes exploited by North Korean entities, including the notorious Lazarus Group, to circumvent US financial restrictions. Furthermore, he noted that the Act would enhance the Treasury's special-measures authority under Section 311 of the USA Patriot Act, which is a powerful tool against rogue actors. The Senate is anticipated to vote on the CLARITY Act on September 15, with Senate Majority Leader John Thune having filed cloture to bring the bill to the floor for consideration. Esper concluded by reiterating the urgency of passing the CLARITY Act, stating, "This is why the Clarity Act, now before the Senate, is not merely a financial services bill. It is also a national security bill, and it should be understood as such and passed with urgency."