Esper Backs CLARITY Act as Critical National Security Measure

Former U.S. Defense Secretary Mark Esper has publicly endorsed the CLARITY Act, calling it a critical national security measure that would strengthen the Treasury Department's ability to counter financial threats posed by China and other adversaries.

The bill, which is scheduled for a Senate vote on September 15, would expand the Treasury's special measures authority under Section 311 of the USA PATRIOT Act. This authority allows the Treasury to impose sanctions on foreign jurisdictions, financial institutions, or transactions deemed to pose a money laundering or national security risk.

Esper argues that China is developing state-backed payment systems designed to bypass the dollar-based financial infrastructure, while groups such as North Korea's Lazarus Group have increasingly used cryptocurrencies to evade U.S. financial controls.